Americans professor at New York University, Thomas Sargent and professor at Princeton University, Christopher Sims won the Nobel economics prize.
They researched that sheds light on the cause-and-effect relationship between the economy and policy instruments such as interest rates and government spending.
The Royal Swedish Academy of Sciences said the winners have developed methods for answering questions such as how economic growth and inflation are affected by a temporary increase in the interest rate or a tax cut. Methods developed by Sargent and Sims are essential tools in macroeconomic analysis.
Americans Thomas Sargent was awarded as 2011 Nobel prize in economics for providing ways to understand the impacts of policy changes or shocks like surging oil prices on output, inflation or employment. Here we take a look at the economists’ backgrounds. Sargent was born in July 1943 and gained a BA in 1964 from the University of California at Berkeley and a PhD in 1968 from Harvard University.He has specialized in the fields of macroeconomics. He is also known as “one of the leaders of the rational expectations revolution” and the author of numerous path-breaking papers.Sargent who is professor of economics and business at New York University, developed a mathematical model in his work and described it in a series of articles in the 1970.Sargent’s work focused on systemic policy shifts.