Realism rewarded

Macroeconomists are widely disparaged for getting most things wrong, but really it is a wonder that they know anything at all. Chemists and biologists can repeat experiments at will, slightly changing one factor or another to see how things respond. Macroeconomists must piece truths together one disaster at a time. That dismal scientists can tell us anything is in large part due to Thomas Sargent of New York University and Christopher Sims of Princeton University, who were awarded the Nobel prize for economics on October 10th.

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