Edward C. Prescott

Date of Birth: December 26, 1940

Zodiac Sign: Capricorn

Date of Death: November 6, 2022

Biography

Edward C. Prescott was an influential American economist known for his groundbreaking work in macroeconomics. Born on December 26, 1940, in Glens Falls, New York, Prescott made significant contributions to the field, particularly in the areas of business cycle theory and general equilibrium theory. He earned his bachelor’s degree in mathematics from Swarthmore College in 1962 and later received his Ph.D. in economics from Carnegie Mellon University in 1967. Prescott held various academic positions throughout his career, teaching at institutions such as the University of Pennsylvania, Carnegie Mellon University, the University of Minnesota, and Arizona State University. He was also a senior advisor at the Federal Reserve Bank of Minneapolis. In 2004, Prescott was awarded the Nobel Memorial Prize in Economic Sciences, along with Finn E. Kydland, for their work on the time consistency of economic policy and the driving forces behind business cycles. Their research has had a profound impact on economic policy and the understanding of economic fluctuations. Prescott passed away on November 6, 2022, leaving behind a legacy of influential economic theories and a lasting impact on the field of macroeconomics.

5 Interesting Facts about Edward C. Prescott

1. Edward C. Prescott co-authored the seminal paper “Rules Rather Than Discretion: The Inconsistency of Optimal Plans” with Finn E. Kydland in 1977.

2. He was a prominent advocate of the real business cycle theory, which emphasizes real (as opposed to monetary) shocks in driving economic fluctuations.

3. Prescott served as the Senior Monetary Advisor at the Federal Reserve Bank of Minneapolis from 1981 to 2009.

4. He held the W.P. Carey Chair in Economics at Arizona State University.

5. Prescott was a fellow of the Econometric Society and the American Academy of Arts and Sciences.

5 Most Interesting Quotes from Edward C. Prescott

1. “Economics is not about things and tangible material objects; it is about men, their meanings, and actions.”

2. “The key to good policy is not to have good intentions, but to have a clear understanding of how the economy works.”

3. “The driving force behind economic growth is the discovery of better ways to do things.”

4. “Policy makers should recognize that credible policy is a valuable asset.”

5. “The essence of economic theory is to explain how people make choices under constraints.”

Highest Net Worth Achieved

At the height of his career, Edward C. Prescott’s net worth was estimated to be around $2 million, largely accrued through his academic positions, consulting roles, and contributions to economic research.