Nobel Economics winners will tell us what the hell is going on, or not

Great news; now we will know whats going on with the economy (just kiddin, obviously)

“In awarding the $1.5 million prize, with the formal title the Nobel Memorial Prize in Economic Sciences, the Royal Swedish Academy of Sciences cited the researchers “for their empirical research on cause and effect in the macroeconomy.””

 From the Nobels’ homepage:

“The economy is constantly affected by unanticipated events. The price of oil rises unexpectedly, the central bank sets an interest rate unforeseen by borrowers and lenders, or household consumption suddenly declines. Such unexpected occurrences are usually called shocks. The economy is also affected by more long-run changes, such as a shift in monetary policy towards stricter disinflationary measures or fiscal policy with more stringent budget rules. One of the main tasks of macroeconomic research is to comprehend how both shocks and systematic policy shifts affect macroeconomic variables in the short and long run. Sargent’s and Sims’s awarded research contributions have been indispensable to this work. Sargent has primarily helped us understand the effects of systematic policy shifts, while Sims has focused on how shocks spread throughout the economy. “

So….shouldnt we have been told? Their work should carry some predicting power……??

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