Swedish Academy is announcing the winner of Nobel Prize winners of the season one by one, and we finally have the names of 2018 Nobel Prize in Economics recipients. Every year the aficionados passionately wait for the winners as they get to know about worth rewarding discoveries. Well, 2018 Nobel Prize in Economics is more or less reflection of the significant challenges and the opportunities the world is facing regarding its survival and development prospects in the future.
2018 Nobel Prize in Economics Winners
Well, 2018 Nobel Prize in Economics went to two economists William D. Nordhaus and Paul M. Romer.
BREAKING NEWS: ⁰The Royal Swedish Academy of Sciences has decided to award the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2018 to William D. Nordhaus and Paul M. Romer. #NobelPrize pic.twitter.com/xUs6iSyI7h
— The Nobel Prize (@NobelPrize) October 8, 2018
It is important to note why these Nobel laureates gained such an acclaim. William D. Nordhaus got recognition for integrating climate change into long-run macroeconomic analysis while Paul M. Romer worked to incorporate technological innovation into the macroeconomic analysis. While other Nobel Prizes which belong to the fields of Chemistry, Medicine, Physics, and Literature also throw light upon discoveries, the Nobel Prize in Economics is always more important as it tells in which direction that society as a whole is moving and what are the critical issues the world is facing.
Climate Change and Technological Innovation
According to the World Economic Forum report in 2018 climate change is one of the biggest global risks that the world is facing. And, it is not as simple as might seem to be. A rise in temperature and global warming may not only seem to cause flooding and changes in Earth’s geography. But, in reality, the consequence is much more than this.
Climate change is one of the major factors in helping policymakers decide what will bring recessions in the future, how likely the Earth’s resources are subject to depletion and what geographical changes can leave a long-run financial impact.
Introduction of New Fintech Products
Technological innovation is also another factor which impacts the world’s economy; a fact which reflected well in the award of 2018 Nobel Prize in Economics. How a change shits, the paradigm of development is much evident from an impact of industrial revolution on the world’s economy.
The recent example of tech innovation is not how smartphone access is impacting the economic behavior of people. It is more about some complex Fintech products like cryptocurrencies and some techniques like blockchain which are likely to change the way financial institutions make decisions.
So the primary significance of 2018 Nobel Prize for Economics is that it is letting policymakers, governments, and businesses know how crucial it would be to make decisions according to the pace of climate change and technological innovation, which are going to impact the economy in the long run.