James Tobin
James Tobin: A Life of Economic Insight and Innovation
Full Name and Common Aliases
James Tobin was born on March 24, 1918, in Chatham, New Jersey, USA. He is commonly known as Jim Tobin.
Birth and Death Dates
Born: March 24, 1918
Died: March 11, 2002
Nationality and Profession(s)
Tobin was an American economist who held various positions throughout his career, including:
Professor of Economics at Harvard University (1950-1982)
Sterling Professor of Economics at Yale University (1982-1991)
Distinguished Fellow and Research Associate of the American Enterprise InstituteEarly Life and Background
Growing up in a family that valued education, Tobin developed an early interest in mathematics and economics. He attended Harvard University as an undergraduate, where he was awarded his Bachelor's degree in 1937. During World War II, Tobin served in the US Navy, after which he returned to Harvard for his graduate studies. In 1947, he earned his Ph.D. in Economics from Harvard.Major Accomplishments
Tobin is best known for his work on monetary economics and international trade theory. Some of his most significant contributions include:
The Tobin Q Ratio: a formula used to calculate the value of a company's assets relative to its market capitalization.
The Theory of International Trade and Investment: Tobin's work in this area helped shape our understanding of how countries interact through trade.Notable Works or Actions
Tobin was a prolific writer, publishing numerous papers and books throughout his career. Some notable works include:
"A Problem in Asset Management" (1958)
"The Theory of International Trade" (1969)
In addition to his scholarly work, Tobin served on various government committees and commissions, including the Council of Economic Advisers under President John F. Kennedy.
Impact and Legacy
Tobin's impact on economics extends far beyond his research papers. His work has influenced generations of economists and policymakers worldwide. He was awarded the Nobel Memorial Prize in Economic Sciences in 1981 for his contributions to macroeconomic theory, particularly in the area of international trade.
Why They Are Widely Quoted or Remembered
Tobin's quotes are often cited because they offer insightful commentary on economics and its role in society. Some of his most notable quotes include:
"The purpose of a money manager is not merely to earn returns on investments, but also to create value."
* "A high level of income inequality can lead to economic instability."
Tobin's work continues to be widely read and studied today due to its relevance and timeliness. His legacy as a pioneering economist who challenged conventional wisdom in the field serves as an inspiration to scholars and policymakers alike.
Quotes by James Tobin
The greatest good fortune of my return to Cambridge in 1946 was that there, in the spring, I met Elizabeth Fay Ringo. We were married a few months later.
I just find Ammann so appealing ... so deliberate, so smart, a walk-the-walk kind of guy who did something he cared about so deeply, ... I kind of fell in love with that bridge, too -- in fact, with the whole suspension bridge form. It's just a beautiful, beautiful structure.
In 1947 I was elected Junior Fellow of the Society of Fellows, an appointment that allowed me three years of freedom for study, research, and writing.
The cost overruns for the Big Dig look outrageous to us now ... but many big projects of the past have cost much more than the original estimates, ... (But) cities really don't have much choice. Americans have chosen to live in cities; we have no choice but to keep them livable. And despite the enormous headaches that Bostonians are experiencing now ... in 20 years they're going to be proud as hell, because they'll have the most beautiful and livable downtown in the country.
At the same time it offered the hope, as it still does, that improved understanding could better the lot of mankind. For me, growing up in the 1930s, the two motivations powerfully reinforced each other.
After the United States entered the war, I joined the Naval Reserve and spent ninety days in a Columbia University dormitory learning to be a naval officer.
The miserable failures of capitalist economies in the Great Depression were root causes of worldwide social and political disasters.
The stories of the Brooklyn Bridge and the Golden Gate already had been well-told by others, both on film and in books, ... But here was this remarkable, all-but-unknown story about Gustav Lindenthal and Othmar Ammann ... and how they fought each other to realize the dream of bridging the Hudson with what would be the longest bridge in the world.
At the time, my personal research objectives were to provide Keynesian economics with more rigorous foundations and to tighten and elaborate the logic of macroeconomic and monetary theory.