Cheers for Nordhaus and Romer
Cheers for those, who made contribution to the whole world.
The Royal Swedish Academy of Sciences has decided to award the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2018 to William D. Nordhaus “for integrating climate change into long-run macroeconomic analysis” and Paul M. Romer “for integrating technological innovations into long-run macroeconomic analysis.”
Nordhaus and Romer have designed methods for addressing some of our time’s most basic and pressing questions about how we create long-term sustained and sustainable economic growth.
At its heart, economics deals with the management of scarce resources. Nature dictates the main constraints on economic growth and our knowledge determines how well we deal with these constraints. This year’s laureates Nordhaus and Romer have significantly broadened the scope of economic analysis by constructing models that explain how the market economy interacts with nature and knowledge.
Romer’s and Nordhaus’ contributions are crucial steps forward in addressing central questions about the future of humanity. We do not yet have conclusive answers to these questions, but the laureates’ methods have been fundamental in allowing current and future researchers to improve our understanding of the best way to progress towards sustained and sustainable global economic growth.
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