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[cypezokyli]

the nobel price winner for economics apparently made a significant finding ,

Quote: Phelps’s analysis was at variance with earlier views that higher employment could permanently be achieved by inflationary demand policies. Indeed, it implied that there was no long-run tradeoff between inflation and unemployment, as there could be no permanent discrepancy between actual and expected inflation. This hypothesis of a vertical long-run Phillips curve at the equilibrium unemployment rate is one of the most influential ideas in macroeconomics over the past 50 years. The hypothesis has become crucial for the conduct of monetary policy. Modern
central banks generally make their decisions on interest rates on the basis of estimates of the equilibrium unemployment rate.2 In this context, Phelps also provided the first analysis of the determinants of the equilibrium unemployment rate....(the old relationship, known as phillips curve) seemed to provide a menu of choice for policymakers, who could choose between inflation and unemployment according to their preferences.

how many proffessors told that to their students, and they left uni, believing that this is the case, is just amazing....
another created dilemma that people for years had to make choise ? !!!

for people with more knowledge in economics you can read (and hopefully understand ) more here :
http://nobelprize.org/nobel_prizes/economics/laureates/2006/ecoadv06.pdf


and from a theorist , to a practisioner . the nobel peace price was awarded to a Muhammad Yunus and Grameen Bank.

Quote: Muhammad Yunus has shown himself to be a leader who has managed to translate visions into practical action for the benefit of millions of people, not only in Bangladesh, but also in many other countries. Loans to poor people without any financial security had appeared to be an impossible idea. From modest beginnings three decades ago, Yunus has, first and foremost through Grameen Bank, developed micro-credit into an ever more important instrument in the struggle against poverty. Grameen Bank has been a source of ideas and models for the many institutions in the field of micro-credit that have sprung up around the world.

viewed from an idealist point of view , this guy is giving loans to poor people trusting them that they will pay it back... and apparently it works!!

perhaps elementary economic theory needs some serious reconstruction...

[thebrix]

cypezokyli wrote: perhaps elementary economic theory needs some serious reconstruction...

Indeed, I got the feeling that, this year, the Nobel prizes were awarded to people who actually deserved them!

(I am not qualified to comment on the medicine and chemistry prizes, but the discovery of anisotropy of the cosmic background radiation is a big thing, to put it mildly).