Beautiful Minds: The Nobel Memorial Prize in Economics

This is that time of the year when the economics fraternity is abuzz with the news of potential winners of the prestigious prize in economics, the Nobel Memorial Prize. This will be the 45th year of award of the prize. This article looks into the history of the Nobel Prize in Economics and attempts to elicit certain interesting facets. A Swedish chemist and engineer, Alfred Nobel (1833-96), made a fortune from the manufacture of explosives. He left most of the money in trust and according to the terms of the Nobel Will (hereafter, Will): the capital, invested in safe securities by my executors, shall constitute a fund, the interest on which shall be annually distributed in the form of prizes to those who, during the preceding year, shall have conferred the greatest benefit on mankind (extracted from Nobel Foundation website, hereafter NFW). The Will further reiterated that five prizes would be awarded to the persons who shall have: (a) made the most important discovery or invention within the field of physics, (b) made the most important chemical discovery or improvement; (c) made the most important discovery within the domain of physiology or medicine; (d) produced in the field of literature the most outstanding work in an ideal direction; and (e) done the most or the best work for fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses.