2011 Nobel Thoughts

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2011 was awarded jointly to Thomas J. Sargent and Christopher A. Sims “for their empirical research on cause and effect in the macroeconomy”.

Macroeconomics is often about trying to understand how events (random or expected, private or public-sector generated) impact key aspects of our everyday life – the prices we are charged in shops, the chances we have getting, or losing, a job. For example, what happens to GDP and exchange rates  if… central banks announce a rise in interest rates, an earthquake devastates supply lines, governments draw up generous budget expansions? None of this would be possible without carefully thought out models and robust empirical testing. The Nobel prizes awarded to Thomas Sargent and Christopher Sims recognise the huge contribution they have made to tackling such important questions about our economic journeys.

Realism rewarded, The Economist, 15 Oct 2011
The art of distinguishing between cause and effect in the macroeconomy, Royal Swedish Academy of Sciences, Oct 2011 (a technical version of the appreciation can be found here)
Interview with Thomas Sargent, Minneapolis Fed, The Region, Sep 2010
Interview with Christopher Sims, Minneapolis Fed, The Region, Jun 2007