How economics Nobel moves with the times

The Nobel prize in economics, which has gone to Joel Mokyr, Philippe Aghion, and Peter Howitt for explaining “innovation-driven economic growth”, is the latest in an established trend: Recognition of work reflecting current themes.

- SUBHOMOY BHATTACHARJEE

With crypto, semiconductors and artificial intelligence becoming key determinants of economic growth for companies, sparking a race among nations to tap into their benefits, it was only a matter of time before the economics Nobel honoured economists who provide a theoretical understanding of these forces.

Here isa snapshot of other awardees whose research studies have enriched the world’s understanding of current economic and financial developments:

Last year the prize went to Daron Acemoglu, Simon Johnson, and James Robinson, “for studies of how institutions are formed and affect prosperity”. This was the year global attacks on democratic institutions peaked. Strident comments by then Presidential candidate Donald Trump on the US judiciary and disputes closer home over the role of the Election Commission were stark examples. There was criticism of the work of the Nobel troika, especially over whether they got the reasoning right, with critics pointing out that institutions followed prosperity rather than the other way round. But all agreed that institutions mattered in democracies.

The winner in 2023, Claudia Goldin, was another apt choice for the time. Her award, the citation read, was “for having advanced our understanding of women’s labour market outcomes”.

The subject was particularly relevant as nations emerged from the pandemic, which had affected work outcomes for women more than men.