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Between the Auction Theorists and the Nobel Committee, Technology Made Its Way

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Posted in Contemporary economics, History of economics Tagged with: , , , , , , ,

A handful of developments in research economics in the early 1980s created sufficient excitement to attract the attention of journalists. As the saying goes, there were sovereigns in the air. Paul Krugman edited a conference volume on strategic trade policy built around  new ideas about economies of scale. Thomas Sargent, in “The Ends of Four Big Inflations,” suggested that the Federal Reserve Board’s battle against inflation might be less costly than was commonly thought. Paul Romer began investigating the logic of policies that might stimulate economic growth. Fynn Kydland and Edward Prescott, having already reformulated the terms by which central