Paul Krugman was awarded the Nobel Prize for Economics this morning, Reuters reports, in recognition for his work on globalization and free trade. Krugman, a New York Times columnist, Princeton professor, and staunch Bush critic, has long been a favorite for the award, but says it came as a surprise this morning. “I rushed to take a shower … I called my wife and I called my parents. I've not yet managed to get myself a cup of coffee,” he said.
Krugman has blamed Bush policies for the current economic crisis. His Nobel-winning research “integrated the previously disparate fields of international trade and economic geography,” according to the committee. Krugman’s theory is that small-scale production for local markets has been replaced by cheaper large-scale production for global markets, explaining why countries with similar conditions and products dominate world trade. (Read more Nobel Prize in Economics stories.)