Edmund Phelps was born in 1933 near Chicago, but he grew up and went to school in Hastings-on-Hudson, New York, where his family had moved when he was six years old. In 1951, he went to Amherst College as an undergraduate student. At his fathers advice, Phelps took his first economics course in his second year at Amherst. His economics teacher was James Nelson and his studies were based on a famous textbook by Paul Samuelson. Phelps was very interested in studying business. He knew of important unsolved problems and had new ideas, such as the gap between microeconomics and macroeconomics.