US academic wins Economics Nobel

US economist Edmund S Phelps has won the 2006 Nobel Economics Prize for work on trade-offs in macroeconomic policy.

    Phelps has investigated economic trade-offs

    The Nobel jury noted that the work by Phelps, a professor of political economy at Columbia University in New York, had improved understanding of how policy affected welfare for present and future generations.

     

    The jury said his work "deepened our understanding of the relation between short-run and long-run effects of economic policy" and has had "a decisive impact on economic research as well as policy".

     

    His research showed that although full employment, stable prices and rapid growth are central goals of economic policy, trade-offs occasionally need to be made between the consumption of current and future generations.

     

    "He has emphasised that not only the issue of savings and capital formation but also the balance between inflation and unemployment are fundamentally issues about the distribution of welfare over time," the Nobel committee said on Monday.

     

    Prize sum

     

    Phelps will take home a 10 million kronor ($1.37 million) prize.

     

    The Nobel Economics Prize is the fourth of the six coveted awards announced this year.

     

    It is the only prize not originally included in the last will and testament of the creator of the awards, Swedish inventor Alfred Nobel.

     

    It was created by the Swedish Central Bank in commemoration of its tricentenary in 1968, and was first awarded in 1969. The prize is funded by the bank.

     

    The prizes for Medicine, Physics and Chemistry were awarded last week. The Literature Prize will be announced on Thursday and the Peace Prize on Friday.

    SOURCE: AFP


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    Heron Gate mass eviction: 'We never expected this in Canada'

    Hundreds face mass eviction in Canada's capital

    About 150 homes in one of Ottawa's most diverse and affordable communities are expected to be torn down in coming months

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.