As befits a combative, septuagenarian American economics professor known for his distinctly cynical view on Europe’s growth prospects, Edmund Phelps is conservative in his choice of New York restaurant for lunch. Isabella’s, at the base of a seven-storey, redbrick, upper-west-side building with metal fire escapes, is filled with parents and children enjoying its American cuisine. The bright dining room overlooks the school opposite.

Last year’s economics Nobel prize winner arrives exactly on time. Born in 1933, Phelps is tall and lanky with a big smile. He is wearing a pale-green checked summer jacket and brown tie; his white hair is neatly trimmed. After much international travel recently – he is just back from Sao Paulo – “it’s kind of nice to re-establish contacts with my roots”, he says, referring to the menu.