On October 10th, 2011 the Royal Swedish Academy of Sciences awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Thomas Sargent and Christopher Sims "for their empirical research on cause and effect in the macroeconomy". In this article we present the contribution for which Sims was awarded. We first present his academic cursus. Then, we summarise his key contributions. In order to overcome the limitations of Keynesian Macroeconometric models, Sims (1980) made the famous Sims critique and proposed a multivariate model where the only restrictions are the selection of variables and the choice of the number of lags. We conclude with an outlook of the academic researches generated by the Sims' pioneering work.
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