Edmund Phelps

Edmund Phelps is an American economist who is the 2006 Nobel Laureate in Economics and author of numerous influential books. Born in 1933, he is regarded by many as one of the most important economists of our generation.

Phelps earned his B.S. from Amherst College in 1954, his M.A. from Yale in 1957 and his PhD from Yale in 1959, all in economics. He began teaching at Yale in 1961, and subsequently taught at Columbia University and Northwestern University throughout his career.

Phelps is mostly known for his work in economics and particularly his contribution to macroeconomics theory development. In 1968, he argued that dynamic disequilibria in markets could generate involuntary unemployment, challenging the traditional static theories of economics. His contributions to macroeconomics also included work on the politico-economic implications of the golden rule of capital accumulation.

He also developed the concept of human capital, which suggests that investment in better education and job training can produce economic gains. His ideas on the subject have become popular and important to contemporary thought in economics.

Throughout his career, Phelps wrote numerous influential books, which helped shape the marketplace for ideas for decades to come. The best known amongst these are "Stabilizing an Unstable Economy" (1986) and "Rewards and Risks of Investing in Equities" (1993).

In 2006, Phelps was awarded the Nobel Memorial Prize in Economics for his contributions to macroeconomic theory. In his Nobel Lecture, titled "The Golden Age of the Market Economy and its Crisis: Seeing the Present in the Past", Phelps discussed the crisis of the modern market economy and how it changed the nature of the economic system.

In the lecture, Phelps discussed how globalization has transformed market economies, with global financial markets and the rise of global corporate governance allowing for improved capital allocation and better incentives. He proposed that the best way to deal with global economic instability is through effective monetary policy, which should focus on stabilizing the real economy instead of financial markets or global currencies.

Phelps' work has had a lasting impact on contemporary macroeconomics and his influence can clearly be seen in the textbooks used in today's economics courses. In addition to his Nobel prize, Phelps received the National Medal of Science, the Franklin Institute's Benjamin Franklin Medal and numerous other accolades for his work in economics.

His most recent book, published in 2017, is titled "Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change". In it, Phelps argues that the last 50 years have seen an extraordinary increase in the number of people in developed countries that have enjoyed stable economic progress, prosperity and happiness. He further contends that government can, and should, play a complementary role in furthering this process, by increasing access to education, promoting public innovation and providing better working conditions.

Edmund Phelps is a towering figure in economics who, through his numerous books, has helped shape an entire generation of thinking in the field. His work has revolutionized macroeconomics theory development, while his Nobel Lecture defined how the modern market economy should be viewed and managed. His theories and insights remain relevant today, as evidenced by the impact they have had on modern economic thought, making him one of the most important economists of our time.