The Sveriges Riksbank Nobel Prize in Freshwater Economics for 2013 goes to Eugene Fama

6 October, 2013 at 11:45 | Posted in Economics | 7 Comments

In a  post last year yours truly wrote about the decision of The Royal Swedish Academy of Sciences  to award The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2012 to Alvin Roth and Lloyd Shapley. I complained that the prize committee once again confirmed that neoclassical economic theory today basically is in the story-telling business whereby economic theorists create make-believe analogue mathematical models of the real economic system.

This year I’m sure the prize committee will show how in tune with the times it is and award the prize to Eugene Fama.

Why?

chicago1) Well, he’s a Chicago economist and a champion of rational expectations and efficient markets.

2) Nowadays freshwater economists seem to be the only ones eligible for the prize.

3) An economist who has described the notion that finance theory was at fault as “a fantasy” and argued that “financial markets and financial institutions were casualties rather than causes of the recession” has to appeal to a prize committee with a history of awarding theories and economists totally lacking any real world relevance.

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7 Comments »

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  1. I think Romer will get it! (he, he)

  2. Not Reinhart and Rogoff?

    • How could I forget R&R? Unforgivable! But I guess the prize committee hasn’t forgotten them :)

    • I have a 90 percent probability in favor of Reinhard and Rogoff sharing this fake Nobel Prize. My crystal ball says so …

  3. Reuters suggests that Angrist, Card and Krueger might win. But not sure why. http://thomsonreuters.com/press-releases/092013/nobel-laureates

  4. Please tell me you’re being facetious…I don’t think even the people who are involved in selecting the Nobel Memorial Prize in Economic Sciences would be so daft as to invoke public uproar by giving it to Eugene Fama. Granted, I think there was uproar when F.A. Hayek and Milton Friedman received their awards, but Eugene Fama would really take the cake.

  5. Congratulations :)


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