Prescott wins Nobel

Finn Kydland of Norway and Edward Prescott of the United States won the Nobel economics prize Monday for research that laid the groundwork for more independent central banks and explained business cycles.

Link

What is interesting about this outcome is that the market predicted Prescott, but economists - at least those that blog - ironically poo-pooed this prediction. This is an example of what some were saying before:

I don't feel like I'm going out on a limb here - Ed Prescott will not win a Nobel Prize for economics this year. Prescott will win some day, no doubt. And personally, I hope he wins with Finn Kydland, co-author on Prescott's two most influential papers. But his current high price in a Nobel Prize prediction market is a good opportunity for short selling ... So, bring it on Nobel committee ... make me look like an idiot.

Your wish is their command. Link

Addendum: Marginal Revolution has some interesting commentary on this year's Nobel winners. Here, Here, and Here.