News / USA

Two Americans Share Nobel Prize for Economics

Undated handout pictures show Americans Thomas Sargent (R) and Christopher Sims (L) who were awarded the 2011 Nobel economics prize on October 10, 2011 in Stockholm.
Undated handout pictures show Americans Thomas Sargent (R) and Christopher Sims (L) who were awarded the 2011 Nobel economics prize on October 10, 2011 in Stockholm.

Americans Thomas Sargent and Christopher Sims share the 2011 Nobel prize in economics for providing ways to understand the impact of policy changes on the economy. The prize is based on old research that is of great interest in the current global financial crisis.

"The Royal Swedish Academy of Sciences has decided to award the Sveriges Riksbank Prize in Economic Sciences in memory of Alfred Nobel, 2011, to Professor Thomas J. Sargent at New York University, New York, USA and Professor Christopher A. Sims at Princeton University, Princeton, USA," said Professor Staffan Normark.

Sixty-eight year-old Thomas Sargent is a professor of economics at New York University. Christopher Sims, also 68, is a professor of economics and banking at Princeton University.

Thomas Sargent, 68, a professor at New York University who won the Nobel economics prize, teaches a class on October 10, 2011.
Thomas Sargent, 68, a professor at New York University who won the Nobel economics prize, teaches a class on October 10, 2011.


Both men have studied how economic policy, such as raising interest rates or cutting taxes, affects such variables as GDP and inflation.

Professor Sargent’s work was based on a study of inflation policies in the post-World War II era, when many countries initially implemented a high-inflation policy.

Professor Sims’s so-called "vector auto-regression" analysis has been applied to examine, among other things, how interest rates set by central banks affects the economy.

Central bankers and government officials use the work of the two men to determine how changes in policy affect the economy.

Related video report by Mil Arcega:

Their work has come under fire since the 2008 global financial crisis, however, as governments and central banks in Europe and the United States struggle to deal with serious economic problems.

Danny Quay, professor of economics at the London School of Economics, studied under Sargent. He called the choice "brilliant."

"The work that these two people did is going to be hugely important for helping us properly analyze how we come out of the current desperate financial situation we find ourselves in," said Quay.

But Sims told a news conference in Stockholm by telephone that resolving the current financial turmoil is not going to be an easy task.

"I don't have any simple answer, but I think the methods that I have used, and Tom has developed, are central to finding our way out of this mess. I think they point to a way to try to unravel why our serious problems develop and new research using these methods may help us lead us out of it," said Sims.

Both men carried out their research independently in the 1970s and 1980s. They will share the approximately $1.5 million prize.

Related video report by Mil Arcega:

You May Like

Turkey's Controversial Reform Bill Giving Investors Jitters

Homeland security reform bill will give police new powers in search, seizure, detention and arrests, while restricting the rights of suspects, their attorneys More

Audio Slideshow In Kenyan Prison, Good Grades Are Path to Freedom

Some inmates who get high marks could see their sentences commuted to non-custodial status More

'Rumble in the Jungle' Turns 40

'The Champ' knocked Foreman out to regain crown he had lost 7 years earlier when US government accused him of draft-dodging and boxing officials revoked his license More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Victorious Secularists Face Challenge to Form Government in Tunisiai
X
Henry Ridgwell
October 30, 2014 11:39 PM
Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Victorious Secularists Face Challenge to Form Government in Tunisia

Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Africa Tells its Story Through Fashion

In Africa, Fashion Week is a riot of colors, shapes, patterns and fabrics - against the backdrop of its ongoing struggle between nature and its fast-growing urban edge. How do these ideas translate into needle and thread? VOA’s Anita Powell visited this year’s Mercedes Benz Fashion Week Africa in Johannesburg to find out.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.

All About America

AppleAndroid