Two Americans and one British-Cypriot develop a theory that confronts unemployment rates

[one...two...tree 2,762]

By LOUISE NORDSTROM and KARL RITTER, Associated Press

Two Americans and a British-Cypriot economist won the 2010 Nobel economics prize Monday for developing a theory that helps explain why many people can remain unemployed despite a large number of job vacancies.

Federal Reserve board nominee Peter Diamond was honored along with Dale Mortensen and Christopher Pissarides with the 10 million Swedish kronor ($1.5 million) prize for their analysis of the obstacles that prevent buyers and sellers from efficiently pairing up in markets.

Diamond -- a former mentor to current Federal Reserve chairman Ben Bernanke -- analyzed the foundations of so-called search markets, while Mortensen and Pissarides expanded the theory and applied it to the labor market.

Since searching for jobs takes time and resources, it creates frictions in the job market, helping explain why there are both job vacancies and unemployment simultaneously, the academy said.

"The laureates' models help us understand the ways in which unemployment, job vacancies and wages are affected by regulation and economic policy," the citation said.

Diamond, 70, is an economist at the Massachusetts Institute of Technology, and an authority on Social Security, pensions and taxation.

President Barack Obama has nominated Diamond to become a member of the Federal Reserve. However, the Senate failed to approve his nomination before lawmakers left to campaign for the midterm congressional elections.

Senate Republicans have objected to what they see as Diamond's limited experience in dissecting the inner workings of the national economy.

Bernanke was one of Diamond's students at MIT. When Bernanke turned in his doctoral dissertation back in 1979, one of the people he thanked was Diamond for being generous with his time and reading and discussing Bernanke's work.

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[Obama 2012 1,714]

Bernanke is/has been part of the problem. If this dipship mentored him, then we sure as hell don't want him anywhere near the FED.

Of course the FED has been systematically destroying the US economy since its inception and especially since Greenspan was the chairman.

All of this by design mind you (after all they have foreign investors to make filthy stinking rich).

[Heracles 417]

Bernanke is/has been part of the problem. If this dipship mentored him, then we sure as hell don't want him anywhere near the FED.

Of course the FED has been systematically destroying the US economy since its inception and especially since Greenspan was the chairman.

All of this by design mind you (after all they have foreign investors to make filthy stinking rich).

You tell em! We saw exactly where the lack of regulation and a fed with a libertarian ideology got this country.

PS Thanks for that documentary..

Edited October 11, 2010 by Heracles

[Obama 2012 1,714]

You tell em! We saw exactly where the lack of regulation and a fed with a libertarian ideology got this country.

PS Thanks for that documentary..

No problem. There's plenty more out there like it.

You get many wrong on many things. I'm all for regulation. Just in the right areas.

Funny thing being is Americans spend too much time listening to what the nightly news tells them.

Everything that's really going wrong is right there for them to see each and every day. If they'd watch C-SPAN and C-SPAN 2, they'd learn so much about the BS that congress pulls and the BS that the FED pulls... Of course, we're too lazy to look there. There's quite a few documentaries out like that one. All of them use what Americans don't normally see as well because of that laziness.

[Ban Hammer 13,394]

some people just don't want a job. now gimme my nobel.

[mawilson 2,133]

some people just don't want a job. now gimme my nobel.