Here is the announcement of the 2006 Nobel Prize in economics, which goes to Edmund Phelps. Here is more detail. It’s another case of an economist winning a prize for correcting the errors of other economists, while not still not meeting up to the high standards set by the likes of Say and Mises.
John Cochran has this to say: “Much of his work helped move the profession away from the standard Neo-Classical synthesis macro model, which was a positive, but also probably stimulated work on representative agent micro-foundation models which is not so positive.”
Randall Holcombe says: “By the criteria we’ve come to expect from the Nobel committee, I’d say he’s deserving. He’s a Friedman-style macroeconomist who explained why there wasn’t a stable long-run Phillips curve trade-off in formal mathematical terms. He looked at the effects of inflationary expectations and was one of the pioneers in the “microfoundations of macroeconomics” literature which was a precursor to the current general equilibrium macroeconomics that dominates the “top” journals.”
Sam Bostaph says: “He’s a step up from the last three years anyway.”