Monday, October 13, 2008

Smart, Full and Focused

This looks like someone we should follow: Paul Krugman, the Princeton University scholar and New York Times columnist. He won the Nobel economic prize for his analysis of how economies of scale can affect trade patterns and the location of economic activity.
The Royal Swedish Academy of Sciences praised Krugman for formulating a new theory to answer questions about free trade.

"What are the effects of free trade and globalization? What are the driving forces behind worldwide urbanization? Paul Krugman has formulated a new theory to answer these questions," the academy said in its citation.

"He has thereby integrated the previously disparate research fields of international trade and economic geography," it said.
Read more about Paul's background, at least as a New York Times columnist, here.

1 comment:

Laurel Delaney said...

Interesting commentary about Krugman in the WSJ 10/14:

Krugman Helped Us Understand Trade

My favorite part ...

Ricardo's Difficult Idea:

Ricardo grasped that people will specialize in producing the goods and services in which they have a comparative advantage. The result is that we never need to worry about low-wage countries competing us out of jobs; the most they can do is change those goods and services in which we have a comparative advantage. For example, though you can rake leaves faster than the teenager next door, it still makes sense to hire him because you have a comparative advantage in writing software programs.

Mr. Krugman points out that most noneconomist intellectuals are unwilling to take even 10 minutes to understand this. But that doesn't stop them from writing about trade as if they're informed.