STOCKHOLM - Americans Thomas Sargent and Christopher Sims shared the Nobel prize in economics on Monday for work that helps governments and central banks weigh up responses to crises -- though it offers no immediate answer to current global problems.
"The methods that I have used and that Tom has developed are essential to finding our way out of this mess," Sims said over a satellite link to the announcement event in Stockholm.
But he warned that the measurement tools he and Sargent had independently worked out in the 1970s to assess the impact of policy changes and of shocks to the economic system provided no quick or simple solutions to the global crisis:
The Royal Swedish Academy of Sciences, which made the award, said the 10 million crown ($1.5 million) prize recognized their "empirical research on cause and effect in the macro-economy" and said their work laid the foundation for modern macroeconomic analysis.
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