October 11, 2010

The 2010 Nobel Prize in Economics

Peter Diamond (MIT), Dale Mortensen (Northwestern U), and Christopher Pissarides (LSE) won the 2010 Nobel Prize in Economics for their contributions to the theory of unemployment. Congratulations! Their work on job search theory, wage stickiness, hysterisis, job creation, and job destruction shed new light on our understanding of unemployment.
It's interesting that the US Senate rejected Peter Diamond's nomination for the Federal Reserve Board back in April 2010. His intellectual influence still carries on to the FED through his former student and current chairman of the FED, Ben Bernanke.
Also, the 2010 Nobel Prize in Economics is a good reason for celebrating the Austrian Economics because the prize-winning work on employment includes insights from the Schumpeterian creative destruction and the Hayekian discovery process.

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