Phelps was honoured “for his analysis of intertemporal tradeoffs in macroeconomic policy”, according to a statement from the Royal Swedish Academy of Sciences. He wins 10 million Swedish kronor.
“The work of Edmund Phelps has deepened our understanding of the relation between short-run and long-run effects of economic policy. His contributions have had a decisive impact on economic research as well as policy,” wrote the Academy.
Phelps was born in 1933 in Evanston, Illinois. He took a PhD in economics at Yale and is currently professor of political economy at Columbia University in New York.
As is often pointed out by Nobel purists, the award in economics is actually not a “real” Nobel prize, but a Nobel Memorial prize created in 1969 by the Riksbanken to, among other things, celebrate its 300th birthday.