In 2011 the Nobel Prize in Economics has been given to two macroeconomists Thomas Sargent and Christopher Sims. At the juncture of deep economic crisis worldwide; particularly in North America and Europe what is the contemporary relevance of Sargent and Sims’ ‘seminal work’ in 1970s? Does the Nobel Committee try to prove any point regarding the burning issues centering global economic crisis? To get an answer we have to analyze the Nobel in Economics from its historical perspective.
Paul Krugman on the inadequacies of mainstream economics theory and its inability to reconcile with the global financial crisis.