Edmund Phelps Wins Noble Prize in Economics

The Chicago Tribune reports:

American Edmund S. Phelps won the 2006 Nobel Memorial Prize in Economic Sciences on Monday for explaining the relationship between inflation and unemployment, work that has had a profound impact on macroeconomic policy.

The 73-year-old Columbia University professor challenged prevailing views in the 1960s by developing a new economic model that has helped corporate and government leaders balance inflation and unemployment in decision-making.

Here's some information on the Friedman-Phelps model which suggests that there's no longer run trade-off between inflation and unemployment.You might say Keynesian economists wasn't honored today.