Congratulations to Dr. Krugman

By Fester:

Paul Krugman won his Nobel Prize in Economics this morning.  His work on trade and currency drove the prize. His trade work is a basic reconciliation of theory and reality.  Neoclassical trade theory predicts that capital rich countries with expensive labor would trade with capital poor countries with cheap labor.  And that capital rich countries would not have a whole lot of trade with other capital rich countries.  Whoops, how do you explain the massive levels of trade between very similar economies sending each other near substitutes such?  That was the work that won the Nobel.

And speaking as a purely partisan blogger, I'm waiting with great schradenfreude for the right wing cognitive dissonance implosion from the Krugman stalkers... I'm cruel, I know.

Update by BJ

The implosion didn't take long.  Glenn Reybolds starts off with FIRST AL GORE, NOW THIS, but I think my favourite has to be this from Jules Crittenden:

I’m afraid I have zip to offer on that, except to say if the Royal Swedish Academy of Sciences likes it and it isn’t about DNA, it must either support terrorism, hate America or be completely absurd. Extra credit for Bush-bashing

Comments

[Mark]

Actually, reaction to this award will provide a good litmus test for righties to determine who is unhinged and who actually tries to be intellectually honest. Compare the reaction of Glenn Reynolds with that of Tyler Cowen.
As for me, I'd say it's pretty clear that by any measure Krugman has been one of the most influential economists of the latter half of the 20th century and early part of the 21st. Even as someone who would probably disagree with Krugman on many issues of economics, the fact is that his economics writing always falls into the must-read category and you learn something from it even as you disagree with it. His political writing, however, is another story altogether....but then again, he's not supposed to be a political expert.