By Alejandro Freixes, CCNN Head Writer
When it comes to economics (how money is made), it’s not just about adding up dollars and cents. Economists study the entire system of cash flow, from the way products are created to how many folks are buying them up in the stores.
The entire world is built upon economics, both in terms of how nations trade with one another and the very value of goods, bank accounts, and government resources.
So, to win the Nobel Prize in economics, you’ve got to be really, and I mean really smart about understanding the big picture and the little details. That’s why big congratulations are in order for the 2013 Nobel Prize winners in economics: Eugene F. Fama and Lars Peter Hansen of the University of Chicago, and Robert J. Shiller of Yale University!
Their work on predicting prices has reshaped the minds of investors – people who spend money on items they hope will earn them more cash in the future.
Shiller, in particular, even predicted the falling prices of houses that tipped the US economy into its current weakened state.