Nobel Prize for economics awarded to Hall and Woodford for work on ‘smoothing’ crises
Source: The Guardian ·
US economists developed models that help central bankers and finance ministers to stabilise their economiesBusiness live – latest updatesTwo US economists have won the 2026 Nobel economics prize for their work developing models that help central bankers and finance ministers to stabilise their countries, avoiding long recessions and runaway inflation.Robert Hall of Stanford University,…
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Two US economists have won the 2026 Nobel economics prize for their work developing models that help central bankers and finance ministers to stabilise their countries, avoiding long recessions and runaway inflation. Robert Hall of Stanford University, California, and Michael Woodford of Columbia University, New York, were recognised for developing the “microeconomic foundations of macroeconomic stabilisation”, giving policymakers better tools to smooth out the peaks and troughs of their economies. The Royal Swedish Academy of Sciences said it was recognising the pair for generating “a paradigm shift in stabilisation policy”, awarding them the prize worth a combined $1.2m (£900,000). “New Keynesian models, a result of their research, allow us to explain and quantify how stabilisation policy affects business cycles and are now used by central banks and finance ministries around the world,” the academy said. These models improved on John Maynard Keynes’s stabilisation models, which…
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