Krugman wins Nobel for Economics

Washington Post, Oct.14, 2008 on pages D1,D2: -

Paul Krugman occupies two spheres in the American intelligentsia. One is a New York Times columnist and the other is a Princeton University economist famous for his research on international trade and finance. He is noted for his barbed criticisms apropos of the policies of Bush administration. I do concur with him re the focus of priority or allocation of resources for USA. Presidential candidate Obama shares the same reasoning for guns or butter for the wellbeing of the United States re Iraq vis-a-vis domestic needs.

When asked about China, he said: "I've been spending my last few years trying to save my own damn republic." But The Swedish Academy wrote a commentary that explained Krugman's work as follows:(relating to Sino-American Economics in a nutshell)

"It becomes advantageous for a nation to specialize in manufacturing a specific car, and to produce it for the world market, while another nation specializes in a different brand of car. This allows each nation to take effective advantage of economies of scale,thereby implying that consumers worldwide will benefit from greater welfare due to lower prices and greater product diversity, as compared to a situation where each nation produces solely for its own domestic market, wtihout international trade.

Such commentary reinforces my previous blogs of citing the Law of Comparative Advantage and the role of China in manufacturing cars for global markets as I would envision. Cf. quod vide i.e. sequel to my rationale/thoughts.

Alfred Nobel's will in 1895 authorized awards for physics, chemistry, physiology or medicine, literature and peace. The first economics prize was awarded in 1969 to Dutch economist Tinbergen for his "Convergence Theory" apropos of the combo of economic systems as empirical evidence in China at present. Such theory has been validated and implemented.

Francis Shieh a.k.a. Xie Shihao, a lifelong student of economics as a learner and a student since early 1940s in China and in USA.

Tuesday, October 14, 2008 at 10.40 a.m.