Finn Kydland publishes with Edward C. Prescott their their seminal article “Rules Rather than Discretion: The Inconsistency of Optimal Plans." The two economists analyze whether central banks should have strict numerical targets or be allowed to use their discretion in setting monetary policy.
Finn Kydland marries Liv Kjellevold, at the time a nursing student. They have four sons: Jon Martin and Eirik Tomas, daughters, Camilla, and Kari.
Finn Kydland returns to Norway to take a position at Norwegian School of Economics and Business Administration. While there, he continue developing work with colleagues from the Carnegie-Mellon University. Together they work on Game Theory further developments.
Finn Kydland returns to Carnegie-Mellon University where is appointed professor.
Finn Kydland is appointed Henley Professor of Economics at the University of California, Santa Barbara.
Finn Kydland marries Tonya Schooler (now Kydland), a cognitive psychologist.
Finn Kydland teaches at the Oltedal elementary school, in Gjesdal second largest town.
Finn Kydland receives his PhD from Carnegie-Mellow University (Graduate School of Industrial Administration) where he defended a dissertation on decentralized macroeconomic planning.
Finn Kydland start working as Sten Thore's research assistant, a professor of Economics at the Norwegian School of Economics and Business Administration. In 1969, Thore starts a visiting position at the Carnegie-Mellon University and invites Kydland to resume his research-assistant duties there.
Finn Kydland receives (with Edward C. Prescott) the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel for "for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles".
Finn Kydland publishes with Edward C. Prescott an influential paper titled “Time to Build and Aggregate Fluctuations." In this article the two economists argue that shifts in supply typically caused by changes and improvements in technology accounted “Not only long term increases in living standards but also to many of the short term fluctuations in business cycles.”
Finn Kydland takes a accounting correspondence course and works as an accountant for his friend Harald Aarrestad who owns two businesses. In the end of the first year, Kydland applies to the Norwegian School of Economics and Business Administration but his application is rejected and he stays in Oltedal. During the second year he continues teaching and starts running one of Aarestad's businesses.
Finn Kydland arrives to the Carnegie-Mellon University as a visiting student at the Graduate School of Industrial Administration. He works half time for Sten Thore as his research assistant while taking core courses in economics and programming with Marty Geisel, John Ledyard, and Egon Balas.
Finn Kydland moves to Bryne to attend Rogaland offentlege Landsgymnas. He elects maths and physics as his study concentration.
Finn Kydland graduates from the Norwegian School of Economics and Business Administration.
Finn Kydland is born in Gjesdal (Norway) to Martin and Johanna Kydland. He was the oldest of seven siblings and grown up in Søyland.