The blog post on predictions did mention Sargent but missed on Sims. Both have been on the perennial waiting list.
Anyways, both have got the prize for 2011:
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”
Sargent is from NYU and Sims from Princeton..
As always useful stuff from Nobel Website on their works:
How are GDP and inflation affected by a temporary increase in the interest rate or a tax cut? What happens if a central bank makes a permanent change in its inflation target or a government modifies its objective for budgetary balance? This year’s Laureates in economic sciences have developed methods for answering these and many of other questions regarding the causal relationship between economic policy and different macroeconomic variables such as GDP, inflation, employment and investments.
These occurrences are usually two-way relationships – policy affects the economy, but the economy also affects policy. Expectations regarding the future are primary aspects of this interplay. The expectations of the private sector regarding future economic activity and policy influence decisions about wages, saving and investments. Concurrently, economic-policy decisions are influenced by expectations about developments in the private sector. 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.
- MR has tons of links: Christopher Sims, Nobel Laureate, Nobel for Sargent and Sims, Thomas Sargent, Nobel Laureate
- Krugman’s response would be more interesting as Sargent was from a freshwater school. Krugman praises the award saying Sargent did much more work.
- TGS Blog says prize that was wasted as it awarded to Sargent who worked on rational expectations. After this crisis and criticism of Lucas, it should not have been given to Sargent
- Mankiw says highly deserved
- John Taylor thanks them for helping us think through policy
- WSJ Blog has a nice post on how the duo encouraged young PhDs