Paul Krugman today won something he long deserved to win. I remember especially enjoying his work on increasing returns to scale and patterns of trade when I was in grad school. And a few weeks ago, he produced a lovely, simple theoretical model of why capital infusion would be a more effective mechanism for bailing out banks than asset purchases (link to come).
Krugman's genius resides in his ability to develop simple models that are remarkably powerful at explaining a complicated world. Besides that, he is the rare economist who can write a graceful English sentence.
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