Thursday, December 09, 2004

That's Why They're Paying You The Big Bucks

Nobel prize winning economist Ed Prescott maximizes his utility:

Citing the sensitivity of his role with the Federal Reserve Bank of Minneapolis, Prescott declined to say how far he thought the dollar would fall or to speak about the implications of its weakness for monetary policy in the United States and Europe.

"The world economy is doing quite well. There is a steady growth," he said, adding that on a personal level he liked the dollar going down because "I get more out of the prize."

The prize, which Prescott shares with Norwegian Economics Professor Finn Kydland, is worth 10 million Swedish crowns ($1.51 million).

When last year's Nobel honors were bestowed on the laureates in medicine, physics, chemistry, literature, economics and peace, each 10-million-crown prize was worth around 1.36 million dollars.

Then gave a characteristic appraisal of one of his laureate buddies:

Speaking at Tuesday's news conference, one of the physics prize winners, Davis Gross of the United States, talked about scientists' passion for their work, saying: "Making money is perhaps fun ... but it's nothing compared with exploring nature."

Asked by reporters afterwards about the effects on economic growth if all people thought like Gross, Prescott said: "It would be an unmitigated disaster."

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