Krugman Wins Economics Nobel

by Bill Kavanagh: It probably isn’t a bad thing for focusing attention on pragmatic, interventionist solutions to our economic woes that Paul Krugman, who we’ve been quoting here a lot recently, has now won the Nobel Prize in economics.  Krugman has been a consistent critic of the deregulation of the derivatives markets and of the hands-off approach taken towards the housing crisis by the Bush Administration. 

While his work in international trade is the subject of the Nobel award, he hopes the recognition will help him to be taken seriously when he writes and speaks about other economic subjects.  Krugman has been derided by conservative writers for his suggestion that the U.S. take steps to ease the credit crisis like the ones now underway in European countries, starting with the plan announced last week by Gordon Brown in the UK.

“For readers of the column, maybe they will read a little more carefully when I’m being economistic, or maybe have a little more tolerance when I’m being boring.”

He said that he does not expect his critics to let him off any easier because of his new accolade, though.

“I think we’ve learned this when we see Joe Stiglitz writing,” Mr. Krugman said, referring to the winner of the economics Nobel in 2001. “I haven’t noticed him getting an easy time. People just say, ‘Sure, he’s a great Nobel laureate and he’s very smart, but he still doesn’t know what he’s talking about in this situation.’ I’m sure I’ll get the same thing.”