Duo win Nobel economics prize
11 October 2011, 16:53
Stockholm - Thomas Sargent and Christopher Sims have bagged the 2011 Nobel Economics Prize for their innovations in macro-economics analysis that has been adopted by researchers and policymakers around the world.
According to reports by the Daily Nation, the jury said that the duo worked separately, but their work is complementary.
Sargent’s research revolved around structural macro-economics, which can be used to analyse permanent changes in economic policy, and be applied to study macro-economic relations whilst Sim’s based on vector autoregression, shows how the economy is affected by temporary changes in economic policy and other factors such as a central bank rate hikes.
The economics prize, created by the Swedish central bank, the Riksbank, in 1968 is the only one of the six Nobels not originally included in the 1895 will of the prizes’ creator, Swedish industrialist Alfred Nobel.
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