Edward C. Prescott

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DEFINITION

The winner of the 2004 Nobel Memorial Prize in Economics, along with Finn Kydland, for his macroeconomic analysis of the business cycle and economic policy. His 1982 paper, co-authored with Kydland, challenged the Keynesian view of the business cycle. Prescott and Kydland are also famous for a 1977 paper on the time consistency problem in economic policymaking.

INVESTOPEDIA EXPLAINS

Born in New York in 1940, Edward Prescott earned his Ph.D. in economics from Carnegie-Mellon University. Prescott was the Senior Monetary Advisor in the Research Department at the Federal Reserve Bank of Minneapolis, a research associate at the National Bureau of Economic Research and a professor of economics at Arizona State University as of 2010. He has also taught at the University of Minnesota, Northwestern University, Carnegie-Mellon University, the University of Pennsylvania and the University of Chicago.


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