Kudos to Robert Shiller, Eugene Fama, and Lars Peter Hansen for winning the Nobel Prize in Economics. All were cited for their independent but complimentary breakthroughs in asset pricing. Fama is seen by many as the father of modern finance for his ‘60’s era work on the theory of efficient markets pricing of assets. His work gave rise to the index-funds industry. Shiller was cited for his work in the difference between markets short-term efficiency and their less enduring efficiency over longer terms. His work gave rise to the field of behavioral economics. Hansen was cited for his theorem of Generalized Method of Moments, an econometric tool for studying changes in asset pricing that is applicable throughout financial markets and beyond.
And just to show how little respect the field of economics gets, Shiller said that after being notified by the Nobel Prize committee early Monday morning that he had won, Shiller called his brother in Detroit, apparently before the news had spread. Shiller asked his brother, “Did you hear the news?” His brother replied, “The Tigers lost,” referring to the Boston Red Sox come-from-behind win over the Detroit Tigers.
To quote Rodney Dangerfield, “No respect. I’m tellin’ ya, no respect.”
This is what passes for economic news during the shutdown.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury