Peter A. Diamond Bags Nobel Prize With Dale Mortensen and Christopher Pissarides

October 12th, 2010 - 7:28 pm ICT by GD  

By Gina Gomez
peterOct 12, (THAINDIAN NEWS) Peter Arthur Diamond, the American economist, a professor at the Massachusetts Institute of Technology won Nobel Prize for his contribution in the labor market research along with other two economists Dale Mortensen and Christopher Pissarides. The main subject of their research was the difficulties of matching the supply and demand and it was particularly based in the labor market. The Nobel jury told in their statement that the trio were awarded Nobel Prize for their analysis of markets with the “search frictions”.

The media outlets have reported that Peter A. Diamond has also been nominated by President Barack Obama to join the board of Federal Reserve. However, source close to the Senate Republicans has reported that the Senators have blocked his seat and he is awaiting for the confirmation. The Senate Republicans reportedly said that Peter A. Diamond lacks the experience that is needed to become a part of Federal Reserve. Sen. Richard Shelby of Alabama, the senior Republican on the Senate Banking Committee told a reputed media source that the Nobel Prize for Economics is a “significant” recognition for him but the Royal Swedish Academy of Sciences would not determine who would be qualified serve the post on Board of Governors.

Peter A. Diamond’s research answers the questions of underemployment in-spite of the job openings and at the same time it answers the affect of economic policy on environment. Professor John Van Reenen, director of LSE’s Centre for Economic Performance told in one of statements to a reputed media source that the work of Nobel Prize winning trio has prepared the ground of fundamental reasoning of “aggregate unemployment” and “business cycles”. While talking about the economic recovery Peter A. Diamond said that the process is going to be slow and painful.

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