Nobel Prize for economics awarded to Hall and Woodford for work on ‘smoothing’ crises
US economists developed models that help central bankers and finance ministers to stabilise their economies
TL;DR
- Robert Hall and Michael Woodford won the 2026 Nobel economics prize.
- They developed models for macroeconomic stabilization, improving on Keynesian economics.
- Their research provides tools for central bankers and finance ministers to manage economies.
- The models help stabilize economies, avoiding long recessions and runaway inflation.
- Their work led to the development of forward guidance by central banks.
- The prize is officially known as the Sveriges Riksbank prize in economic sciences in memory of Alfred Nobel.