Krugman wins Nobel for economics

US economist Paul Krugman, pictured in 2006

Mr Krugman is a fierce critic of President George W Bush

American academic Paul Krugman has won this year’s Nobel economics prize, it has been announced.

The Royal Swedish Academy of Sciences said the award recognised Mr Krugman’s analysis of trade patterns and where economic activity takes place.

It said Mr Krugman, 55, a Princeton University professor, had formulated new theories that answered questions about free trade and globalisation.

Mr Krugman said he hoped the $1.4m win would not change his life greatly.

"The prize will enhance visibility but I hope it does not lead me into going to a lot of purely celebratory events, aside from the Nobel presentation itself," he said.

We are now witnessing a crisis that is as severe as the crisis that hit Asia in the 90s. This crisis bears some resemblance to the Great Depression
Paul Krugman
Nobel prize winner

Mr Krugman teaches economics and international affairs at Princeton University in New Jersey, and also writes a regular column for the New York Times.

http://news.bbc.co.uk/2/hi/americas/7667190.stm