N. Gregory Mankiw

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N. Gregory Mankiw

Mankiw as Chairman of the Council of Economic Advisers.
Born February 3, 1958 (1958-02-03) (age 56)
Trenton, New Jersey
Nationality United States
Alma mater Princeton University (BA)
Massachusetts Institute of Technology (PhD)
Harvard Law School (did not graduate)
Influenced by John Maynard Keynes
Arthur Pigou
Stanley Fischer
Milton Friedman
Influenced Ricardo Reis
Awards Wolf Balleisen Memorial Prize (1980)
Galbraith Teaching Prize (1991)

Nicholas Gregory "Greg" Mankiw (born February 3, 1958) is a famous economist. He graduated from Princeton University and Massachusetts Institute of Technology. He was an economic advisor for President George W. Bush from 2003-2005. In 2006, he became an economic adviser to Mitt Romney.[1][2]

He wrote a widely used college textbook for economics called Principles of Economics, listing 10 principles that all economies run on:

  • People Face Tradeoffs (sometimes people have to choose between two things)
  • The Cost of Something is What You Give Up to Get It
  • Rational People Think at the Margin (people think of the pros and cons before making a purchase)
  • People Respond to Incentives (when there is a reward to do something, more people will do it)
  • Trade Can Make Everyone Better Off
  • Markets Are Usually a Good Way to Organize Economic Activity (the economy usually does well without government interference)
  • Governments Can Sometimes Improve Market Outcomes (sometimes it is necessary for the government to help the economy)
  • A Country's Standard of Living Depends on Its Ability to Produce Goods and Services
  • Prices Go Up When the Government Prints Too Much Money (the more money there is, the less value it has)
  • Society Faces a Short-Run Tradeoff Between Inflation and Unemployment

His economic beliefs were influenced by John Maynard Keynes and he believes in Keynesian economics. He is sometimes labeled as a conservative because he supported George W. Bush's tax cuts and he has criticized the policies of the Obama Administration a few times. He also was influenced by the economist Arthur Pigou who believed that a high tax on something bad for society (called a sin tax) will result in fewer people buying it.

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