Krugman Wins Nobel Prize

Paul Krugman winning the Nobel Prize in economics today is sure to raise some eyebrows among those who, knowing him primarily as a liberal firebrand, suspect the Nobel Prize committee of an anti-Bush bias. But the first reactions among economists in the blogosphere suggests that Krugman’s prize is deserved. Tyler Cowen at the Marginal Revolution cites Krugman’s work on “strategic trade theory,” which “showed how increasing returns could imply a possible role for welfare-improving protectionism.” Meanwhile, Daniel Davies at Crooked Timber notes “that this is actually Krugman’s reward for being the public voice of mainstream sensible Keynesianism for the last fifteen years.”