By awarding the Nobel memorial prize for economics to three pre-eminent researchers on the causes and remedies for poverty, the Royal Swedish Academy of Sciences has not just honoured a particular body of academic work but given a shot in the arm for the broader standing of the economics profession itself.
The failure to foresee the financial crisis as well as the neglect of growing inequalities for a long time has reinforced an image of the academic economists as so many Panglosses too caught up in their own otherworldly models to see the world as it is.
There is little in economics that is more immune to that charge than the poverty research of Abhijit Banerjee, Esther Duflo and Michael Kremer, this year’s laureates.
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