# Paul Krugman wins Nobel Prize in Economics

#### lisab

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I've always enjoyed reading Krugman's columns, but I wasn't aware he did work at this level.

http://www.msnbc.msn.com/id/27159654/

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#### Gokul43201

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Neither was I - I was pretty surprised when I read the news.

Here's the award page: http://nobelprize.org/nobel_prizes/economics/laureates/2008/

And an interesting quote from back in 2005:
Paul Krugman said:
These days Mr. Greenspan expresses concern about the financial risks created by "the prevalence of interest-only loans and the introduction of more-exotic forms of adjustable-rate mortgages." But last year he encouraged families to take on those very risks, touting the advantages of adjustable-rate mortgages and declaring that "American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage."

If Mr. Greenspan had said two years ago what he's saying now, people might have borrowed less and bought more wisely. But he didn't, and now it's too late. There are signs that the housing market either has peaked already or soon will. And it will be up to Mr. Greenspan's successor to manage the bubble's aftermath.

How bad will that aftermath be? The U.S. economy is currently suffering from twin imbalances. On one side, domestic spending is swollen by the housing bubble, which has led both to a huge surge in construction and to high consumer spending, as people extract equity from their homes. On the other side, we have a huge trade deficit, which we cover by selling bonds to foreigners. As I like to say, these days Americans make a living by selling each other houses, paid for with money borrowed from China.

One way or another, the economy will eventually eliminate both imbalances.

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The BEST Krugman moment came when he was talking with Keith Olbermann on his show and said "All your decision are belong to me." when referring to the first $700B bailout plan that had Paulson make all the moves. I was in tears. It was the best moment of Countdown ever, and it was sadly lost to the abyss because I couldn't figure out how to rip it from www.msnbc.com onto Youtube. For those who don't understand, Google "All your base are belong to us." It's an obvious variation on this ancient meme. That man is awesome to say that on mainstream TV as a professor. #### Ivan Seeking Staff Emeritus Science Advisor Gold Member "The Chinese sell us poison toys and tainted food, and we sell them toxic securities" - Paul Krugman #### Astronuc Staff Emeritus Science Advisor I've always enjoyed reading Krugman's columns, but I wasn't aware he did work at this level. http://www.msnbc.msn.com/id/27159654/ I was thinking about this the other day while reflecting on someone else who should win a Nobel for his humanitarian work. I am pleased to see Krugman get! He deserves it, it is timely, and he should be taken more seriously. Krugman is a strong critic of the Bush administration and it's unsound economic policies. Announcment on Yahoo - Columnist Paul Krugman wins Nobel economics prize (should read Economist and Columnist) http://news.yahoo.com/s/ap/20081013/ap_on_bi_ge/eu_sweden_nobel_economics [Broken] STOCKHOLM, Sweden - Paul Krugman, the Princeton University scholar, New York Times columnist and unabashed liberal, won the Nobel prize in economics Monday for his analysis of how economies of scale can affect international trade patterns. Krugman has been a harsh critic of the Bush administration and the Republican Party in The New York Times, where he writes a regular column and has a blog called "Conscience of a Liberal." He has also taken the Bush administration to task over the current financial meltdown, blaming its pursuit of deregulation and unencumbered fiscal policies for the financial crisis that has threatened the global economy with recession. Perhaps better known as a columnist than an economist to the public, Krugman has also come out forcefully against John McCain during the economic meltdown, saying the Republican presidential candidate is "more frightening now than he was a few weeks ago." Krugman (pronounced KROOG-man) also has derided the Republicans as becoming "the party of stupid." Tore Ellingsen, a member of the prize committee, acknowledged that Krugman was an "opinion maker" but added that he was honored on the merits of his economic research, not his political commentary. "We disregard everything except for the scientific merits," Ellingsen told The Associated Press. The 55-year-old American economist was the lone winner of the 10 million kronor ($1.4 million) award and the latest in a string of American researchers to be honored. It was only the second time since 2000 that a single laureate won the prize, which is typically shared by two or three researchers.
Krugman's blog on NYTimes - http://krugman.blogs.nytimes.com/

Attaboy, Paul!

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#### Ivan Seeking

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I wouldn't be so flippant about a Krugman published academic work. His columns are open season; they apparently come under criticism by professional economists of varying viewpoints because he strays from any recognizable economics framework and he's earned a reputation for loose facts in his columns.* I'd expect that criticism to become noticeably louder soon as he's not a just a columnist in the popular press any more, he represents his peers now.
So your point is that you know when he's right and when he's wrong?

Pass that pipe Paul.
It seems to me that you are the one with a flippant attitude towards people far more accomplished than you.

The question was: What are your credentials?

#### mheslep

Gold Member
So your point is that you know when he's right and when he's wrong?

It seems to me that you are the one with a flippant attitude towards people far more accomplished than you.

The question was: What are your credentials?
Yes, to be clear, it was me that was being flippant about his column, not about the quality of his academic economics work which is certainly not my field. And no, I don't need any 'credentials' to be flippant about a political columnist that has reputation with his own paper's ombudsman for being loose with his figures in his columns, and in 2003 claimed that deficit spending would soon send the US 'off the cliff'.