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Detroit-born economist Paul Milgrom wins Nobel Prize in economic sciences

Detroit-born economist Paul Milgrom wins Nobel Prize in economic sciences

It was in the middle of the night and the Nobel Prize committee couldn’t reach their 2020 economic sciences winner, Detroit-born professor Paul R. Milgrom. 



a screenshot of a computer screen: Winners of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2020 at a press conference in Stockholm, Monday Oct. 12, 2020. Americans Paul R. Milgrom, left, and Robert B. Wilson have won the Nobel Prize in economics for "improvements to auction theory and inventions of new auction formats."


© Anders Wiklund/TT via AP
Winners of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2020 at a press conference in Stockholm, Monday Oct. 12, 2020. Americans Paul R. Milgrom, left, and Robert B. Wilson have won the Nobel Prize in economics for “improvements to auction theory and inventions of new auction formats.”

Luckily, Milgrom’s co-winner is also his neighbor.

According to Stanford University, where the winning duo currently teaches, Robert B. Wilson trekked to Milgrom’s house in the middle of the night, knocking incessantly to tell him the good news. 

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You can watch that moment, and the Michigan-raised winner’s stunned reaction, below.

Milgrom was born in Detroit in 1948. He graduated Oak Park High School and went on to complete his bachelor’s degree in mathematics at the University of Michigan, Ann Arbor.

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He and Wilson won for their improvements to auction theory and inventions of new auction formats. According to the Nobel Prize, “(t)heir discoveries have benefitted sellers, buyers, and taxpayers around the world.”

So…what is auction theory? 

People are usually selling things to the highest bigger and buy from the cheapest offer. But the price of an auctioned object — whether it is an art or an antique — changes wildly from auction to auction, the Nobel Prize release explained. 

Milgrom and Wilson studied how auctions work, which is difficult because there are so much factors to take in, especially the bidder’s behavior. They focused on things that are a little harder to auction, like securities, minerals and energy. 

Wilson’s theory

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US weekly jobless claims fall to 840,000, more than economist forecasts

US weekly jobless claims fall to 840,000, more than economist forecasts

  • New US jobless claims for the week that ended Saturday totaled 840,000, the Labor Department said Thursday. The reading landed above the consensus economist estimate of 820,000 but marked a slight decline from the previous week’s revised figure.
  • Continuing claims, which track Americans receiving unemployment benefits, fell to 11 million for the week that ended September 26. That was also lower than economist expectations.
  • Visit Business Insider’s homepage for more stories.

The number of Americans filing for unemployment benefits edged lower last week in a modestly encouraging sign for the labor market’s prolonged recovery.

New US weekly jobless claims totaled an unadjusted 840,000 for the week that ended Saturday, the Labor Department announced Thursday. That reading came in above the median economist estimate of 820,000 compiled by Bloomberg, but reflects a slight decrease from the previous week’s revised figure.

Continuing claims, which track the aggregate total of Americans receiving unemployment benefits, declined to 11 million for the week that ended September 26. The reading came in below the median economist estimate of 11.4 million.

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Thursday’s report holds “a mix of worrisome and hopeful readings” on the nation’s labor market, Nancy Vanden Houten, lead US economists at Oxford Economics, said. On one hand, the number of Americans receiving regular state benefits fell by 1 million in the week ended September 26.

Yet “the number of individuals who have exhausted regular benefits continues to climb, further evidence of more long-lasting scarring effects from the pandemic,” she added.

The roughly 64 million unemployment-insurance filings made since early February handily overshadow the 37 million filings made during the 18-month long

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Borrow to fight economic impact of pandemic, says World Bank’s chief economist

Borrow to fight economic impact of pandemic, says World Bank’s chief economist

Developing countries should take on new debt to help them fight the economic impact of the coronavirus pandemic — but they will later suffer an unprecedented wave of debt crises and restructurings, World Bank chief economist Carmen Reinhart has warned.

The former Harvard University professor is best known for her work with fellow economist Kenneth Rogoff on the economic damage inflicted by financial crises throughout history, which was especially relevant during the great recession of 2008-09. But their work on the risks of high debt levels has been attacked for fuelling governments’ austerity policies in the following decade.

Ms Reinhart, who became chief economist at the World Bank this year, told the Financial Times in an interview that additional government borrowing was justified in the current circumstances.

“While the disease is raging, what else are you going to do?” she said. “First you worry about fighting the war, then you figure out how to pay for it.”

But Ms Reinhart has long argued that developing economies have a lower tolerance for debt than advanced economies. The impact of the pandemic will only exacerbate that problem, she said.

“Ken Rogoff and I wrote about debt intolerance in emerging markets 20 years ago,” Ms Reinhart added. “The level of debt that historically gets them into trouble is much lower.”

Ms Reinhart spoke as the World Bank and IMF prepare for their joint annual meetings, which will be held online next week.

How to deal with the sharp rise in government indebtedness during the pandemic — caused by falling output and rising public spending — will be one of the hottest topics of discussion. 

The G20 group of leading nations is

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Goldman Sachs’ chief economist says Asia is ‘best positioned’ to stage an economic recovery from COVID-19

Goldman Sachs’ chief economist says Asia is ‘best positioned’ to stage an economic recovery from COVID-19

Goldman Sachs


  • Goldman Sachs’ chief Asia economist Andrew Tilton told CNBC’s “Street Signs Asia” he is “reasonably upbeat” on the economic recovery going into 2021. 
  • He said: “We think Asia’s really the best positioned of the major regions right now, just given the good control of the virus in most of the regions outside of India and some parts of Southeast Asia.”
  • He said purchasing managers indices were better in September, suggesting momentum in the industrial sector remained strong. 
  • He said a fiscal deal in the US between Republicans Democrats would bolster growth in Asia.
  • A blue wave scenario where a Democratic president takes control of both the House and Senate would bolster growth but may also “pull forward” the timing of the next Fed rate hike,” he said. 
  • Visit Business Insider’s homepage for more stories.

Asia is far better “positioned” to stage an economic recovery from the pandemic, Goldman Sachs’ chief Asia economist Andrew Tilton told CNBC’s “Street Signs Asia” Monday. 

Tilton said he is seeing “reasonable global momentum” going in the fourth quarter. 

“We think Asia’s really the best positioned of the major regions right now, just given the good control of the virus in most of the regions outside of India and some parts of Southeast Asia,” Tilton said. 

“We just had a round of purchasing managers indices which were almost all better month-on-month, suggesting that industrial sector momentum remains pretty good,” he added. 

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China’s huge manufacturing sector continued to recover in September, affirming the world’s second largest economy is recovering from the pandemic. 

Tilton

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