The Riksbank bullied Sweden into legislating an ersatz Nobel Prize.

Evidence

Peter Nobel has stated in public this was an unparalleled example of successful trademark infringement; but it was also much more. Members of the organizations formally tasked with judging the real Nobels were left in the dust as the steamroller passed by. A few notables, such as Professor Sten Friberg, rector of the Karolinska Institute, attempted to speak out in opposition, but to no avail. The bank’s third trick was to extend the strong-arm tactics to its nominal owner, the Swedish state. The Riksbank had wandered very far off reservation by mounting this full-court press to create an ersatz Nobel; some sort of approval was required. A special committee pointed out that the bank’s charter limited it to running a banking service, a printing press, and production of bank paper; anything else would require special legislation. A bill was rushed through Parliament, and votes were held with no public debate whatsoever. On April 11, 1969 the first chamber voted 79 in favor, 20 against and 18 abstaining; on April 16, the second chamber voted 152 in favor, 28 against and 28 abstaining. With this last obstacle removed, it became possible for the Riksbank to construct a Nobel which resembled as much as possible as the real thing. — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 469

Categorization

• SEED: The creation of the ‘Nobel’ economics prize as an engineered prestige-capture device is a strong case study in how institutions manufacture credibility — the Swedish state’s rubberstamp with zero public debate could anchor an essay on manufactured recognition.
• XREF: Connects to the theme in Milgrom of institutions emerging to solve coordination problems — here the inverse, an institution manufactured for prestige capture rather than market efficiency. — connects to: The Swedish Riksbank prize committee deliberately laundered the Mont Pèlerin Society into orthodox economics. — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 500; Hayek opposed the economics Nobel Prize as an excessive grant of individual authority. — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 523; The Riksbank deceived stakeholders to force the economics prize through — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 466 (+2 more)

Broader Connections

• The ersatz Nobel Prize steered economics toward one ideological species while denying that intent #expands (0.90) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 478
• The Nobel Prize initially marginalized Friedman but later legitimized the MPS school #expands (0.75) — Angus Burgin, The Great Persuasion, 514