Paul Krugman Awarded Economics Nobel

New York Times Columnist And Princeton Professor Receives Prize For Work On Trade Patterns

(AP)  Princeton economist and New York Times columnist Paul Krugman won the Nobel economics prize on Monday for his analysis of how economies of scale can affect trade patterns and the location of economic activity.

Krugman was the lone of winner of the 10 million kronor ($1.4 million) award and the latest in a string of American researchers to be honored.

The Royal Swedish Academy of Sciences praised Krugman for formulating a new theory to answer questions about free trade.

"What are the effects of free trade and globalization? What are the driving forces behind worldwide urbanization? Paul Krugman has formulated a new theory to answer these questions," the academy said in its citation.

"He has thereby integrated the previously disparate research fields of international trade and economic geography," it said.

The award, known as the Nobel Memorial Prize in Economic Sciences, is the last of the six Nobel prizes announced this year and is not one of the original Nobels. It was created in 1968 by the Swedish central bank in Nobel's memory.

In addition to his work as an economist at Princeton University in New Jersey, where he has been since 2000, Krugman also writes about politics and inequality in the United States and other topics for The New York Times.

Commenting on the global economic meltdown, he told a news conference in Stockholm by telephone from the United States that some of his research was linked to currency crises and related issues.

"This is terrifying," he said, comparing it to the financial crisis that gripped Asia in the 1990s.

He said winning the Nobel award won't change his approach to research and writing.

"The prize will enhance visibility," he said, "but I hope it does not lead me into going to a lot of purely celebratory events, aside from the Nobel presentation itself."

The citation said Krugman's approach is based on the premise that many goods and services can be produced at less cost in long series, a concept known as economies of scale.

His research showed the effects of that on trade patterns and on the location of economic activity.

[ozonmojo]

Next year Maureen Dowd and Mark Rich will certainly share the prize for Literature.

[brianbwb-2009]

Krugman will be proven wrong, as his theory is based on a premise that disregards the effects of corruption, for example what is cheaper about destroying and replacing melamine-laced milk products, or recalls due to flawed construction, and non existent safety and quality standards.

The hidden costs simply get passed on to correction efforts, liability claims settlements, and other rehabilitation.

Any economic theory that disregards the effects of corruption is flawed, as is the presumption that such corruption is anything less than the norm.

Maybe the Nobel committee should put a clause in the prize that gives them the right to a refund when their prize winners are proven wrong.

[missingamerica]

Next year Maureen Dowd and Mark Rich will certainly share the prize for Literature.

Posted by ozonmojo at 08:19 AM : Oct 13, 2008

Unless the Republicans retain control of the White House, in which case I would expect William Kristol to win the Nobels for both Literature and Peace ("fraternity among nations").

[mediawatch50]

Congratulations, Mr. Krugman. Those of us who like our economics to be based on reality, salute you.

[karmad-2009]

I have been enjoying Krugman''s articles for some time and am glad to see his work recognized. I have saved a number of them for reference and am grateful for his compassionate, thoughtful and insightful work.

[dnamj]

Despite my general feeling of skepticism towards the whole field of economics, I highly regard Krugman, and appreciate that the Nobel committee does as well.

[omega40]

Bush should have spent the last 8 years listening to him and we likely wouldn''t be in the mess we are in now.

[bobnjersey]

[Krugman will be proven wrong ... Maybe the Nobel committee should put a clause in the prize that gives them the right to a refund when their prize winners are proven wrong.]
[Posted by brianbwb at 08:24 AM : Oct 13, 2008]

say it aint so ... an economic theory that''s incomplete? this can''t be ... seeing that all the others accurately describe the dynamics of economics without exception.

[jumkey]

Posted by brianbwb

Yeah, all those Nobel Prize winners sure **** me off too.

Seriously, why don''t you wingnuts start a campaign to discredit and mock the Nobel Prize because the research that usually wins completely repudiates every facet of conservative "thought" from evolution to politics to economics. Oh wait, you already have. It''s how you deal with fact you find inconvenient (which is to say everything).

Conservative is a modern America is a synonym for "idiot".

[afsc30574]

"Seriously, why don''''t you wingnuts start a campaign to discredit and mock the Nobel Prize because the research that usually wins completely repudiates every facet of conservative "thought" from evolution to politics to economics."

Hmmm, Yasser Arafat.

[dude1961-2009]

The Nobel Committee has completely lost credibility.

Read Krugman''s work. It is ***. Re-worded existing philosophies masquerading as original work.

Then to include "his opinions" as important to their decision.

They give Yasser Arrafat (terrorist) a "peace" prize.

They give Al Gore (mr power point) a "peace" prize.

Gimme a break....

[dude1961-2009]

To put Krugman''s name even close to Milton Friedman''s is a joke.

Free Markets have the word "Free" in them for a reason.

Honest men and women know that big governments must use coercion and violence to ultimately achieve their desires.

Price controls, protective trade barriers, progressive taxation is the bane of allocating scarce productive resources.

[omega40]

In 1976 Milton Friedman won the Nobel prize. I bet they are wishing they could take it back now.

[jerr11]

I think they should''ve awarded the prize to George W Bush.

He singlehandedly increased our national debt to $10 TRILLION!!

Now, that takes vision and foresight!

Our children will be paying off the Bush spending spree for years to come!!


The republicans'' winning election strategy:

NO NEW TAXES!!

MORE NEW SPENDING!!!

[markinga7]

"To put Krugman''''s name even close to Milton Friedman''''s is a joke."

Then why is your "free market" running to mommy (government) when it stubs its toe? The same reason why those with no jobs and no healthcare: Government can help folks in a crisis. If you have ever tried to support a family with no income or tried to get your sick child good medical care without insurance, you would understand there was a crisis for millions around this country even before Wall Street was bit.

My son is taking two economic courses in college right now, and I''m surprised at how difficult it is. I thought they would be some of his easier classes... au contraire, they''re quite a pain! Really makes me appreciate the intellect and intense focus that someone like Paul Krugman must have in order to win a Nobel for his work in the field. What an amazing accomplishment. Love his columns, too. Congratulations, Mr. Krugman!

[mtminds]

What a no duh study. Economists are today''s alchemists. Instead of turning lead into gold, they are working diligently to turn debt into gold.

[easeup-2009]

He''s on my fantasy economist team--traded Bernanke for him last year. Looks like a great deal!

Championship!

[closethippy1]

Congratulations, Mr. Krugman.

I don''t know enough about economics to have an opinion on your ideas, but I regularly read your columns and listen to you as a guest on various shows, and you seem to know what you are talking about.
Congratulations.
Posted by tuckerndfw at 12:51 PM : Oct 13, 2008

Same here. I''ve been following his views for a while because he just makes the most sense. This almost feels like having a friend win the Nobel.
Here''s a man Obama can use in his administration to untangle the economic mess the previous guy, watchamacallim, made.
Krugman is the kind of mind we should have working for all of us in the government instead of a perky teenager like Palin or a neanderthal like Bush.
Hooray for PK!!!

[karlo59]

Congradulation Sir

[ubrew12]

dude1961 said: "To put Krugman''s name even close to Milton Friedman''s is a joke."

Friedman founded the school of ''supply-side economics''. Friedman''s joke is on you. Pay your $40,000 dollar share of the national debt, and we''ll all laugh with you.

[rbburnerjr]

The Nobel prize goes to a Bush critic. That should tell everyone what the world thinks of Bush. Remember that McCain wants four more years of Bush economics.

[claydowner]

Congratulations Mr. Krugman, I''ve read your book the "Great Unraveling". I''ve read your NY Times column for years. I see you on PBS''s News Hour regularly. Thanks for your hard work. You are a good man with accurate economic analysis about the challenges our country faces.

[babooph]

Bush bragged of his "B" in economics[maybe,like his military life-he never was there- like Kennedy at Harvard]it seemed to have him think he is not an idiot-too bad for the USA.