“It’s been an extremely weird
day, but weird in a positive way,” Mr. Krugman said in an
interview on his way to a Washington meeting for the Group of Thirty,
an international body from the public and private sectors that
discusses international economics. He said he was mostly
“preoccupied with the hassles” of trying to make
all his scheduled meetings today and answer a constantly-ringing cell
Some allege that the award is politically motivated, in light of
Krugman’s incessant attacks on the policies of the neocons.
Insiders, however, know that the real reason for the award is
his paper on The
Theory of Interstellar Trade (PDF).
Krugman was the first to recognize the problem of calculating interest
payments when relativistic speeds are involved in the transfer of goods.
Abstract: This paper extends interplanetary trade
theory to an interstellar setting. It is chiefly concerned
with the following question: how should interest charges on goods in
transit be computed when the goods travel at close to the speed of
light? This is a problem because the time taken in transit
will appear less to an observer traveling with the goods than to a
stationary observer. A solution is derived from economic
theory, and two useless but true theorems are proved.
In response, the Nasdaq rocketed up 106.3 points, a 6.44% increase.
Apple shares led the increase. They finally will
stop losing money on shipments of iPods to Epsilon