Bush critic wins Nobel Economics Prize

STOCKHOLM (AFP) - US economist Paul Krugman, a fierce critic of George W. Bush’s handling of the global financial crisis, on Monday won the Nobel Economics Prize.

The 55-year-old Princeton University professor has worked intensely on the impact of free trade and globalisation, as well as the driving forces behind urbanisation, the Nobel citation said.

The financial turmoil that has sent shares crashing has cast a shadow over this year’s prize and after his triumph, Krugman said he was “extremely terrified” by the crisis, Sweden’s TT news agency reported.

“I’m happier about it now than I was five days ago. I was extremely happy with the European summit yesterday, so I’m feeling better today, but it’s still terrifying,” he added.

“I never thought I would see anything that looked like 1931 in my lifetime, but in many ways this crisis does,” he added.

A number of experts had predicted the crisis would prompt the Nobel committee to shift its focus away from liberal market theories now under increased attack because of the credit crunch. And by naming a critic of unfettered free market policies, the jury has decided to confront major, civilisation-changing issues. In columns for the New York Times, Krugman has been a harsh critic of the Bush administration’s policies.