Tribute to Nobel laureate Edward Prescott

Prof Rajnish Mehra of Arizona State University pays tribute to Prof Edward Prescott:

Edward Prescott, co-recipient with Finn Kydland of the 2004 Nobel Memorial Prize in Economic Sciences, passed away in November 2022. This column, written by a long-time friend and co-author, outlines his many research contributions, including being one of the scholars that laid the foundation of the rational expectations revolution in dynamic macroeconomics. He and Kydland were the architects of real business cycle theory and the literature on time inconsistency, which has reshaped our thinking about the credibility of government commitments and had a profound impact on policymaking, particularly monetary policy.

 

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