THOMAS J. SARGENT
NAME: AAYUSHI DEDHIA
CLASS: SYBA (A)
ROLL NO: 032
SAP NO: 40310190029
MACROECONOMICS-II
PAPER-II

 Born: 19th July, 1943
 American economist
 Macroeconomics, monetary economics and time series
econometrics
 29th most cited economist
 Nobel prize-2011
 “empirical research on cause and effect in the macro-economy”
BACKGROUND
Christopher Sims
Thomas John Sargent

EDUCATION
 Currently- Professor of Economics at New York University
Graduation Monrovia High School
B.A. degree University of California 1964
PhD Harvard University
1968
President of Econometric Society 1976
National Academy of Sciences
1983
American Academy of Arts and Sciences
Senior fellow of the Hoover Institution
at Stanford University
1987

 Causal relationship
 Two way relationship
 Future Expectations
 Three-step model
NOBEL PRIZE WORK
policy economy
Two way relationship
Structural
Macroeconomic
model
Solving
mathematical
method
Statistical

POLICY INEFFECTIVENESS PROPOSITION
 New classical theory
 1975- Thomas J. Sargent and Neil Wallace
 Adaptive expectations assumption
 Economists found this unsatisfactory

CONCLUSION
 Leader of rational expectations revolution
 Pioneer--recursive economics
 Contributions-mostly methodological
• historical episodes of the hyperinflation
• Examined events in 1970s
 Understanding of inflation process –gradual process

• Jarnestad, J. (2011). The art of distinguishing between cause and effect in the macro-economy.
The royal Swedish academy of Sciences.
• Boumans, M., Sent EM. (2013). A Nobel Prize for Empirical Macroeconomics: Assessing the
Contributions of Thomas Sargent and Christopher Sims. Review of Political Economy, 25(1),
39-56, DOI: http://dx.doi.org/10.1080/09538259.2013.737122
• Ghazali, N., (2005). Money Growth and Malaysian Stock Prices: A Test of Policy
Ineffectiveness Proposition. IJMS, 12(2), 99-114.
REFERENCES