American Economists Win Nobel

    This picture taken on December 10, 2010 shows the front of the Nobel medal awarded to the Nobel Peace Prize laureate for 2010, jailed Chinese dissident Liu Xiabo. The Nobel Peace Prize ceremony began in Oslo Friday without guest of honour Liu Xiaobo, a jailed Chinese dissident who was represented by an empty chair at the event.  Other Chinese dissidents, ambassadors from a number of countries, Norway's king and queen and other dignitaries were present as the ceremony opened in a flower-decked Oslo city hall. AFP PHOTO / SCANPIX - Berit Roald (Photo credit should read BERIT ROALD/AFP/Getty Images)

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    The Nobel Prize in Economics this year goes to two Americans, Thomas Sargent and Christopher Sims “for their empirical research on cause and effect in the macroeconomy.” The prize committee said Sims and Sargent developed methods for answering questions about how temporary increases in interest rates or tax cuts affect economic growth and inflation. The two 68-year-old economists conducted their research independently in the '70s and '80s. "Today, the methods developed by Sargent and Sims are essential tools in macroeconomic analysis," said the committee. Sargent is a professor at New York University, and Sims is a professor at Princeton University.

    Read it at Associated Press