Saturday, September 27, 2008

The 2008 Nobel Prize in Economics and Market "Exuberance"

Does anyone know what is the date when the Swedes choose the new Nobel Laureate in Economics? The actual winners will be announced in about 2 weeks. The recent market turmoil raises the likelihood that Richard Thaler and Robert Shiller will share the Nobel. My claim is that the Swedes have been nudged as recent events encourage them to reward two great scholars and to simultaneously make a political statement about neo-classical economics.

While I will congratulate the winner of this year's prize, I would like to see a nobel prize in environmental economics. Perhaps a windfall profit tax on the Nobel could collect enough revenue to bail out Wall Street?