The Nobel Prize for Economics has this year been shared by a Norwegian and an American for research that laid the groundwork for more independent central banks and a more thorough explanations of business cycles.

In the citation their work is described as having transformed economic research and also profoundly influenced economic policy in general. Edward Prescott and Finn Kydland’s (chiland) work was mostly carried out in the 70s and 80s. “It’s wonderful” said Kydland “and above all totally unexpected. I think, for an economist, this is the reward for a lifetime of research and also gives a platform for his theories. The fact that it is a Norwegian who has won this prize in Stockholm is also an immense joy. The award includes a cash prize of 1.1 million Euros.

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