The Nobel Prize for economics was awarded to two Americans, Thomas Sargent and Christopher Sims, for their studies in how changes in government policies or economic shocks affect a nation’s economy. Sargent, a professor of New York University, and Sims, a professor of Princeton University, will share the $1.49 million prize.
The Royal Swedish Academy described the research methods shared by Sargent and Sims as essential tools in macroeconomic analysis. While the research does not offer one direct solution to fixing economic woes, Sims said he hopes it can be used to guide policymakers.
