Nobel prize goes to International trade guru

The Nobel prize for economics has just been awarded to Prof. Krugman. He is well known in academia for his work in trade theory, which provides a model in which firms and countries produce and trade because of economies of scale and for his textbook explanations of currency crises and New Trade Theory, all of which is relevant to Frontier Markets.

Krugman was a critic of the "New Economy" of the late 1990s. Krugman also criticized the fixed exchange rates of the Asia nations and Thailand before the 1997 East Asian financial crisis.

Krugman is optimistic that frontier markets will not suffer a protectionist backlash.