Edmund S Phelps bagged the Nobel Prize in Economics this Monday. The name may ring bell in the mind, because in second year, we studied his work in Macroeconomics. Here is the list.
Firstly, we studied his major work; the Expectations Augmented Phillips Curve, whose derivation, incidentally, was asked in the exam as well.
Secondly, among the many models of wage stickiness, there was one given by Phelps in association with Friedman; the Imperfect Information model. Quite related to it was ‘Worker Misperception model’ to derive Aggregate Supply curve.
More importantly, we studied the determinants of Natural rate of unemployment, which follow largely from the work of Edmund Phelps.
So, he figured prominently in our Macroeconomics last year. I would like to mention a quote by Phelps which emphasises that the natural rate of unemployment changes over time. I like it, obviously for its economic content, but more for the use of beautiful words. He noted, the natural rate is not,” an intertemporal constant, something like the speed of light, independent of everything under the sun”.
It gives a nice feeling that we studied & comprehended the work of, who is now, a Nobel laureate.
4 comments:
Congratulations to Phelps!
And congratulations to you for yet another post, and that too so soon!
I remember all that Phelps made us study.. Was niceish!:D
But really Ashish, get out of the economics mode at least sometimes!!
Nope....never :D
Oh yes, Macro was good! Too bad I discovered its goodness quite close to the exams - had I known I would like the subject so much, I would've gone through it more leisurely.
And yes, feels nice having studied (AND comprehended, as you put it, since that's the more important part!) something by a recent Nobel laureate. Usually the topics worked on by Nobel laureates are a blur of words that you read only in the newspaper (and don't quite understand). The Phillips curve part was enjoyable.
@ amiya: u r correct about the work of maost of the nobel laureates appearing like an alien script. Remember last year's game theorists, their work mainly helped armed forces with little help to economics.
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