Tuesday, October 12, 2010

Two Nobels (hopefully) in the team

The 2010 Nobel Prize for economics was awarded to three professors; Peter Diamond of MIT, Dale Mortensen of Northwestern, and Christopher Pissarides of LSE.

Peter Diamond has, I think, been among the candidates since at least a few ago. The other two are a little bit surprising, but their pioneering work in search theory deserves the award.

Obama administration is having two Nobel laureates; Obama himself for peace and Diamond for economics. The problem is that Diamond's nomination to the Fed governor has been postponed by the GOP who thinks that there is a "mismatch" between his experience and the Fed's job. Can his theory solve this problem?

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