Krugman wins 2008 Nobel Prize

American economist and strong critic of the Bush administration, Paul Krugman, is this years winner of the Nobel prize for economics. Krugman has regularly taken President Bush to task over his economic policies.

A professor at Princeton University in the US, he has frequently been tipped to win the prestigious prize. The Royal Swedish Academy said the 55 year-old was being recognised for formulating new theories on free trade and globalisation.

In 2004 he received Spain’s highest honour, the Prince of Asturias Award, for his work. He is also an author and weekly columnist for the New York Times. Much of Krugman’s work concentrates on the analysis of trade patterns and why some countries dominate world commerce.

The prominent economist has been particularly stinging in his criticism over the current credit crisis, claiming Bush’s lack of regulation and loose fiscal policies are to blame.

But on receiving the more than one million euro prize, Krugman praised efforts by world leaders to avert global financial meltdown, saying he was less terrified today than on Friday.