Paul Krugman Biography

Personal Life and Carrier

Paul Krugman is a prominent economist known in America for his effort in the worldwide finance, global trade theories, and the economic geography. On February 28, 1953, Krugman was born in Albany and was brought up in Nassau County. He joined John F .Kennedy at Bellmore for his high school and later graduated from Yale University with a B.A in economics. In 1977 at Massachusetts Institute of Technology (MIT), he did his Ph.D. under Dornbusch his advisor. He then began working in the late 1970s on global trade and a new anticompetitive trade. He worked as an investigative assistant in the National Economic Research Bureau.in 1982, under Ronald Reagan's presidency, he worked in the board economic mentors. He became an economics professor in 2000 at Princeton University.

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Achievements and Publications

Krugman has an experience in the world of journalism and has published and also written a variety of economic related work. In mass media organizations he has participated in the print of over 750 columns which include The Slate, Fortune and New York Times. As a prolific author, Krugman put out more than 200 papers and 20 books which included macroeconomics (2005), The Great Unravelling (2003) which condemned the current president George Bush administration and microeconomics (2004). Krugman is also involved in the publishing of non-academic books such as the Conscience of a Liberal (2007) and The Return of Depression Economics (1999).

In 1991, 40-year-old Krugman was awarded the Nobel Prize and acquired many honors from the American Economist Association and was awarded the John Bates Clark. While still at the Stanford University in 1995 he won an economic writing award, George Eccles Prize for his performance. Later in 2001, he won the Nikkei Prize for his book in economics. His great work came to appraisal as a famous economist in 2008 through his impact on economic geography and trade internationally with a Nobel Prize award.

Contribution to Economic Thought

He developed two theories which are The New Economic Geography associated with regional imbalance and the New Trade Theory in the area of International Economics. The new trade theory involves network effect and how to increase returns to scale through the collection of models in worldwide economic trade. These economies of measure and network special effects are very strong to outweigh comparative gain in the traditional theory. The theories give explanations to trade patterns that will work better compared to previous centuries. He involved firms and countries selling an anticompetitive good where consumers will still prefer their goods no matter the distance or location. For example, people living in Dubai will still prefer cars from Germany. Also, firms with more products of unlike varieties gain higher value than those which deal with similar variety. According to him, the comparative advantage theory would affect the GDP of a country in a positive way where countries export commodities which have a comparative advantage over the market. Through his factor endowment theory, the use of abundant resources for production also has a great impact on economic growth and efficiency.

Economies of scale were generated to the equilibrium models where Krugman brought to understanding the contributing factors to trade and the place of production in a globalized scale in the World War II economy. He explained how the buyer's desire for a range of choices enabled the achievement of economies of scale within a country hence leading to a profitable trade. This now led to the Economic geography which mainly concerned migration of persons and organizations across different landscapes.it also explained the acceleration of businesses with the pace of urbanization.

Krugman led in fiscal and macroeconomic policy after the 2008 economic crisis. He debated that economies were caught up by liquidity and urged the government to print out cash and run huge budget arrears without affecting rates in interest and inflation of a country. This model would solve a lot of economic problems and would reduce inflation and low recovery in terms of growth.