Paul Krugman Awarded Nobel Prize in Economics

American economist Paul Krugman is the recipient of this year’s Nobel Prize in Economics for his work on analyzing the impact of trade patterns on the growth of economic activities in various parts of the world, it was announced on Monday.

The Royal Swedish Academy of Sciences stated that Krugman deserved the prestigious award worth $1.4 million for his contribution to the formulation of a new theory that provides explanations for the causes of urbanization worldwide."He has connected previously separate research areas of international trade and economic geography," the Nobel Committee noted in its explanation of the award, as reported by Reuters. Krugman (55) is a professor of economics and international relations at Princeton University in the United States.

The Prize in Economic Sciences, officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1960 and is not part of the original group of awards envisioned in the will of Swedish inventor and industrialist Alfred Nobel in 1895."I am still shocked," Krugman told reporters a few minutes after learning that he had received the prestigious award, as reported by dpa.

When asked for his comment on the current financial crisis, Krugman said it is "frightening," but he welcomed the plans to overcome the crisis that world political leaders have adopted in recent days."I am pleased that a policy has been accepted that finally makes sense," Krugman said, referring to the G7 meetings in Washington and the Eurozone member countries in Paris over the past weekend. He added that he did not expect to experience an economic crisis in his lifetime that shows similarities to the Great Depression that broke out in 1929.

Krugman is known as a sharp critic of the policies of the administration of U.S. President George W. Bush, which he considers responsible for the current financial crisis. A prominent economist who writes a column for the New York Times, Krugman has long been regarded as one of the leading candidates for the Nobel Prize. The award will be presented to Krugman at the annual ceremony in Stockholm on December 10.  (H)