For sustained growth

Nobel prize winners expanded scope of macroeconomic analysis

The Royal Swedish Academy of Sciences on Monday awarded the Sveriges Riksbank Prize in Economic Sciences — also known as the Nobel Prize for Economics — to William Nordhaus of Yale University and Paul Romer of the NYU Stern School of Business. While the two economists worked on completely different topics, their approach and contribution had similarities. Mr Nordhaus started out in the late sixties and early seventies, looking at the growing mountain of evidence of global warming. The macroeconomic modelling of that era did not have the tools to analyse this new component even though it was clear to