Sargent, Thomas J. (born 1943)

Abstract

Thomas J. Sargent is the 2011 recipient of the Nobel Prize in Economic Sciences (along with Christopher Sims). Sargent has been instrumental in the development of rational expectations economics. The central idea behind this approach is that individuals should not make systematic mistakes. Yet what does it mean for individuals not to make systematic mistakes? Four distinct phases may be identified in Sargent's search for an answer to this question.