The Environmental Economics blog is significantly relieved:
Three American professors — Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller — were awarded the Nobel Memorial Prize in Economic Science on Monday for showing that stock prices, while unpredictable in the short term, tend to follow established rules in the long term.
Their findings have influenced the way many people invest, encouraging the rise of index funds that buy broad baskets of equities and other assets. At the same time, sophisticated investors have sought to profit from the evidence of long-range patterns.
Their work, done individually rather than in cooperation, “laid the foundation for the current understanding of asset prices,” according to a statement from the Royal Swedish Academy of Sciences, which awards the annual prize.
via www.nytimes.com
Stay tuned for Krugman's criticism of Fama.
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