PUP author Thomas J. Sargent, along with Princeton economist Christopher A. Sims, has been awarded the 2011 Nobel Prize in Economic Sciences. Sargent, a professor at New York University, is a visiting professor at Princeton University this fall and has co-authored two books published by Princeton University Press: “The Big Problem of Small Change” with François R. Velde (2003), and “Robustness” with Lars Peter Hansen (2007).
According to the Nobel Prize website, Sargent and Sims received the award “for their empirical research on cause and effect in the macroeconomy.” An article on the Princeton University website expands on this:
Sims and Sargent were honored with the Nobel Memorial Prize in Economic Sciences in Memory of Alfred Nobel for their work in answering “questions regarding the causal relationship between economic policy and different macroeconomic variables such as GDP (gross domestic product), inflation, employment and investments.”
“Economic-policy decisions are influenced by expectations about developments in the private sector,” the Nobel announcement said. “The laureates’ methods can be applied to identify these causal relationships and explain the role of expectations. This makes it possible to ascertain the effects of unexpected policy measures as well as systematic policy shifts.”