"Robert Lucas is the economist who has had the greatest influence on macroeconomic research since 1970,'' the Royal Swedish Academy of Sciences said in its citation.
Lucas was "overwhelmed'' when informed by Nobel officials Tuesday morning that he had won the 7.2 million kronor ($1 million) award.
Reached in Chicago, Lucas said his work showed that if, for example, workers believe inflation is increasing and then demand higher wages, their added income fuels the inflation anyway -- like a self-fulfilling fear.
"The practical implication of my work has been, along with others, to make us a lot more skeptical about our ability to use monetary policy to fine-tune the economy,'' Lucas said .
He is the eighth Nobel economics laureate from the University of Chicago, which has had more winners of the prize than any other university in the world.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.