For the admiral, see Dynamic macroeconomic theory sargent pdf R. Nobel Prize 2011-Press Conference KVA-DSC 7770.

American economist, who is currently the W. Berkley Professor of Economics and Business at New York University. Sargent graduated from Monrovia High School. Sargent is one of the leaders of the “rational expectations revolution,” which argues that the people being modeled by economists can predict the future, or the probability of future outcomes, at least as well as the economist can with his model. Wallace, for alternative monetary-policy instruments and rules on output stability and price determinacy. Phillips curve, the term structure of interest rates, and the demand for money during hyperinflations.

Wallace, the dimensions along which monetary and fiscal policy must be coordinated intertemporally. In 1975 he and Wallace proposed the policy-ineffectiveness proposition, which refuted a basic assumption of Keynesian economics. Lars Peter Hansen in which decision makers do not trust their probability model. In particular, Hansen and Sargent adapt and extend methods from robust control theory.

Sargent has also been a pioneer in introducing recursive economics to academic study, especially for macroeconomic issues such as unemployment, fiscal and monetary policy, and growth. His series of textbooks, co-authored with Lars Ljungqvist, are seminal in the contemporary graduate economics curriculum. Sargent has pursued a research program with Ljungqvist designed to understand determinants of differences in unemployment outcomes in Europe and the United States during the last 30 years. Sargent is known as a devoted teacher.

Among his PhD advisees are men and women at the forefront of macroeconomic research. Sargent’s reading group at Stanford and NYU is a famous institution among graduate students in economics. On October 10, 2011, Sargent, with Christopher A. Sims, was awarded the Nobel Memorial Prize in Economic Sciences. The award cited their “empirical research on cause and effect in the macroeconomy”. He is featured playing himself in a television commercial for Ally Financial in which he is asked if he can predict CD rates two years from now, to which he simply answers, “No. Sargent is notable for making short speeches.

For example, in 2007 his Berkeley graduation speech consumed 335 words. A Note on the Accelerationist Controversy”. Journal of Money, Credit and Banking. The Stability of Models of Money and Growth with Perfect Foresight”. Rational’ Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule”. Rational Expectations and the Theory of Economic Policy”. Formulating and Estimating Dynamic Linear Rational Expectations Models”.

Journal of Economic Dynamics and Control. Federal Reserve Bank of Minneapolis Quarterly Review. Hall, University of Chicago Press, for the NBER, 1983, pp. Convergence of Least Squares Learning Mechanisms in Self-Referential Linear Stochastic Models”. Convergence of Least Squares Learning in Environments with Hidden State Variables and Private Information”.

Monrovia High grad wins Nobel Prize in economics”. The Evolving Rationality of Rational Expectations: An Assessment of Thomas Sargent’s Achievements. American Academy of Arts and Sciences. Rational Expectations and the Theory of Price Movements”. The Theory of New Classical Macroeconomics. A note on maximum likelihood estimation of the rational expectations model of the term structure”.

The Demand for Money during Hyperinflations under Rational Expectations: I”. Rational Expectations, the Real Rate of Interest, and the Natural Rate of Unemployment”. Hall, University of Chicago Press, for the NBER, 1983, p. Macroeconomic Features of the French Revolution”. The Big Problem of Small Change.