STOCKHOLM, Sweden, Oct. 9 (UPI) -- U.S. economist Edmund Phelps has been chosen to receive the 2006 Nobel Prize in economics for research on the relationship between employment and inflation.
Phelps, 73, will receive the prize, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, and the $1.4 million prize that goes with it Dec. 10 in ceremonies in Sweden.
An announcement Monday from the Royal Swedish Academy of Sciences praised Phelps for his work, which showed in the long-run, the rate of unemployment is not affected by inflation.
"Phelps showed how the possibilities of stabilization policy in the future depend on today's policy decisions: low inflation today leads to expectations of low inflation also in the future, thereby facilitating future policy making," the academy said.
U.S. scientists also won the 2006 Nobel Prizes for medicine, physics and chemistry. The final two prizes for this year are to be announced this week with the Literature Prize announcement set for Thursday and the Nobel Peace Prize recipient to be known Friday.
