Paul Krugman wins Nobel Economics Prize
STOCKHOLM: The U.S. economist who won the 2008 Nobel prize for
economics said on Monday the world economy could suffer a prolonged
recession but might escape collapse.
"This is terrifying," Paul Krugman, speaking after learning of his
award, said of market chaos over recent weeks. But he added: "I'm
slightly less terrified today than I was on Friday."
Policymakers around the world agreed drastic steps over the weekend
to rescue banks and free up the flow of lending in the hope of staving
off a global recession.
Krugman, a strong critic of the Bush administration, praised the
efforts made by world leaders to staunch the crisis.
"We're going to have a recession and perhaps a prolonged one but
perhaps not a collapse," he said.
The committee awarded Krugman the prize for work that helps explain
why some countries dominate international trade.
A prominent economist who writes columns for the New York Times,
Krugman has long featured among the favourites to win a Nobel. He is a
professor of economics and international affairs at Princeton University
in the United States.
The Royal Swedish Academy of Sciences said the prestigious 10 million
crown ($1.4 million) award recognised Krugman's formulation of a new
theory that addresses what drives worldwide urbanisation.
"He has thereby integrated the previously disparate research fields
of international trade and economic geography," the committee said.
Thomson Reuters
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