Paul Krugman

Paul Krugman received his PhD in economics from MIT and taught at Yale, MIT, Stanford, and Princeton before joining the Graduate Center of the City University of New York. He received the 2008 Nobel Prize in Economics for his contributions to new trade theory and new economic geography — demonstrating how economies of scale and network effects can lead to geographic concentration of industries, providing a formal theoretical basis for patterns of trade between similar countries. Since 1999 Krugman has written a regular op-ed column for The New York Times, making him the world's most widely read economic commentator. His columns are known for their accessibility, intellectual combativeness, and consistent advocacy for Keynesian fiscal policy in recessions and against austerity. His 1999 book 'The Return of Depression Economics' correctly argued that the kind of demand shortfalls and liquidity trap economics associated with the Great Depression were still possible in modern economies — a thesis dramatically validated by the 2008 financial crisis and the Japan-like slow recovery that followed. Krugman has been a consistent critic of fiscal austerity, arguing that deficit spending is both necessary and effective in deep recessions. His work has been enormously influential in both academic economics and public policy debate.