Paul Krugman wins Nobel in economics

American Paul Krugman, a professor at Princeton University, won the Nobel in economics.

Krugman was awarded the prize "for his analysis of trade patterns and location of economic activity." The Royal Swedish Academy of Sciences added that, "He has shown the effects of economies of scale on trade patterns and on the location of economic activity."

Paul Krugman has formulated a theory to answer the following questions: What are the effects of free trade and globalisation? What are the driving forces behind worldwide urbanisation?

Krugman is a professor of economics and international affairs at Princeton, and also writes a column for The New York Times.