Nobel Economics to Edmund Phelps

The 2006 Nobel Prize in Economics has gone to Edmund Phelps of New York’s Columbia University.

The Royal Swedish Academy of Sciences says he is being honored for his analysis of intertemporal tradeoffs in maco-economic policy.

The academy says Phelps has deepened our understanding of the relationship between short-run and long-run effects, such as the trade-off between unemployment and inflation.

The Economics Prize in Memory of Alfred Nobel was not among those created by the will of the Swedish inventor. It was established in his honor in 1968 by the Bank of Sweden.