Ed Phelps

Edmund Strother Phelps (born 1933) is an American economist and the 2006 Nobel Laureate in Economic Sciences. He is the McVickar Professor of Political Economy and Director of the Center on Capitalism and Society at Columbia University.

Phelps is best known for his contributions to macroeconomic theory. He challenged the then-dominant Phillips curve theory, arguing that there is no stable long-run trade-off between inflation and unemployment. His work demonstrated that workers and firms respond to expected inflation, meaning that any attempt to permanently lower unemployment through inflationary policies will ultimately be self-defeating. This became known as the "natural rate of unemployment" hypothesis.

His work has also focused on the importance of expectations in macroeconomic models. Phelps's models emphasize the role of information, learning, and expectations formation in influencing economic outcomes. He has also explored the role of innovation and structural reforms in fostering economic dynamism and prosperity.

Some of his major publications include "Golden Rules of Economic Growth" (1966), "Inflation Policy and Unemployment Theory" (1972), and "Rewarding Work: How to Restore Participation and Self-Support to Free Enterprise" (1997). His book "Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change" (2013) presents his views on the sources of economic dynamism and societal wellbeing.

Phelps received his Ph.D. from Yale University in 1959. He has held positions at Yale, the University of Pennsylvania, and Columbia University. He is a fellow of the National Academy of Sciences and the American Academy of Arts and Sciences. He has received numerous awards and honors for his contributions to economics.