Today, the Royal Swedish Academy of Sciences announced that New York Times columnist and Princeton economics professor Paul Krugman has won the Nobel Prize in economics “for his analysis of trade patterns and location of economic activity.” Krugman was the lone winner of the $1.4 million award. For at least three years, Krugman has been warning about the dangers of ballooning housing prices and the trade deficit. “One way or another, the economy will eventually eliminate both imbalances,” he wrote in August 2005. Read more at Krugman’s blog here.
Yglesias writes that the award underscores “the fact that very many people who really and truly know what they’re talking about think the progressive approach to economic and social policy is the way to go.”