Paul Krugman Wins Nobel Prize for Economics
Wonderful news about Dr. Paul Krugman's Nobel Prize!
Mr. Krugman received the award for his work on international trade and economic geography. In particular, the prize committee lauded his work for “having shown the effects of economies of scale on trade patterns and on the location of economic activity.” He has developed models that explain observed patterns of trade between countries, as well as what goods are produced where and why. Traditional trade theory assumes that countries are different and will exchange different kinds of goods with each other; Mr. Krugman’s theories have explained why worldwide trade is dominated by a few countries that are similar to each other, and why some countries might import the same kinds of goods that it exports.
“There was something very beautiful about the old existing trade theory, and its ability to capture the world in a surprisingly simple conceptual framework,” Mr. Krugman said. “And then I realized that some of the new insights coming through in industrial organization could be applied to international trade.”
Paul Krugman is one of the genuinely great guys of our days and a brilliant, rational and compassionate thinker. He's a recognized public intellectual and has been a voice for reason during the dark days of Bush. We are truly fortunate that he is one of the economists that is being listened to during this economic crisis.
Congratulations, Dr. Krugman!
Updated with picture of Krugman from Netroots Nation along with Digby, Perlstein and Atrios. What a good panel that was.