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Robert E. Hall and Michael Woodford win Economics Nobel
The Hindu··12h ago
The Royal Swedish Academy of Sciences awarded the Economics Nobel on Monday to Robert E. Hall of Stanford University and Michael Woodford of Columbia University. The citation is for microeconomic foundations of macroeconomic stabilisation. The prize is worth 12 million Swedish crowns, or $1.2 million. It is the final prize this year. The award will be presented on December 10.
Prism
What It Means For You
- The Academy says the laureates' models improve the ability to implement effective stabilisation policy through fiscal and monetary policy measures.
- John Hassler, chair of the prize committee, said the work gives a stable theoretical foundation for models now used by central banks and governments around the world.
- The winners will get a cash award of 12 million Swedish kronor, about $1.2 million.
What's Happening
- The Academy said well-timed fiscal and monetary policy measures, based on the models, can reduce the economy's peaks and troughs.
- Hall is affiliated with Stanford University in California. Woodford is affiliated with Columbia University in New York.
- Woodford's book Interest and Prices showed how models built on the behaviour of households and firms can be used to analyse monetary policy.
How the Economics Prize Differs
- Formally the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, it was first awarded in 1969.
- It is not one of the five awards created in Alfred Nobel's 1895 will. Sweden's central bank established it.
- In 2025 the economics award went to Joel Mokyr, Philippe Aghion and Peter Howitt for research into how technology drives and affects growth.
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