{"id":8210,"date":"2026-10-12T14:07:36","date_gmt":"2026-10-12T14:07:36","guid":{"rendered":"https:\/\/sotnews.agency\/?p=8210"},"modified":"2026-10-12T14:07:36","modified_gmt":"2026-10-12T14:07:36","slug":"american-hall-woodford-win-nobel-memorial-prize-in-economics","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=8210","title":{"rendered":"American Hall, Woodford win Nobel memorial prize in economics"},"content":{"rendered":"
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The winners of the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, Robert E Hall, left, and Michael Woodford, are displayed on a screen at the Royal Swedish Academy of Sciences in Stockholm on Oct. 12. AFP-Yonhap<\/p>\n<\/figcaption><\/figure>\n

STOCKHOLM \u2014 American-born economists Robert E. Hall and Michael Woodford won the Nobel memorial prize in economics on Monday for their work on models that have helped governments and central banks manage economic shocks, such as energy crises and inflation.<\/p>\n

The Royal Swedish Academy of Sciences announced the winners in Stockholm, saying the two were being honored for work that has helped policymakers deal with economic fluctuations.<\/p>\n

\u201cThe laureates have helped us smooth out the economy\u2019s peaks and troughs,\u201d the academy said in a statement.<\/p>\n

Hall is affiliated with Stanford University in California, and Woodford with Columbia University in New York.<\/p>\n

Woodford spoke to the committee by phone Monday from New York, saying: \u201cIt\u2019s a tremendous honor, it\u2019s a surprise.”<\/p>\n

\u201cThe laureates\u2019 work has provided us with a stable theoretical foundation for the models that are now used by central banks and governments around the world,\u201d John Hassler, chair of the Committee for the Prize in Economic Sciences, said in a news release.<\/p>\n

\u201cWith them, we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume.\u201d<\/p>\n

For decades, governments responded to economic shocks by following the Depression-era prescriptions of the British economist John Maynard Keynes: intervene in the economy by lowering taxes and hiking government spending, thereby encouraging consumers and businesses to spend and invest themselves and help growth get restarted.<\/p>\n

\u201cThis is the Keynesian recipe and it worked well \u2013 until it didn\u2019t,\u2019\u2019 said Timo Boppart of the Nobel economics prize committee. Policymakers had thought economic management involved simple tradeoffs \u2013 unemployment, for instance, would stay low at a time of high inflation and rise when inflation fell. But the \u201cstagflation\u2019\u2019 of the 1970s \u2014 when the world economy experienced simultaneous high inflation and high unemployment \u2014 proved the formula was simplistic.<\/p>\n

Hall and Woodford set about coming up with an improved model that took into account how consumers and businesses actually made decisions about whether to invest and spend.<\/p>\n

\u201cIn separate contributions, Robert E. Hall and Michael Woodford helped build this new foundation for stabilization policy,\u201d Hassler said.<\/p>\n

Last year, three researchers who study business innovation won for explaining how new products and inventions promote economic growth and human welfare, even as they leave older companies in the dust.<\/p>\n

The economics prize is formally known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. The central bank established it in 1968 as a memorial to Nobel, the 19th-century Swedish businessman and chemist who invented dynamite and established the five Nobel Prizes.<\/p>\n

Nobel purists stress that the economics prize is technically not a Nobel Prize, but it is always presented together with the others on Dec. 10, the anniversary of Nobel\u2019s death in 1896.<\/p>\n

Nobel honors were announced last week in medicine , physics , chemistry , literature and peace.<\/p>\n

The prize money this year is 12 million Swedish kronor (about $1.2 million), whether for an individual, small group of laureates or organization.<\/p>\n

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The winners of the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, Robert E Hall, left, and Michael Woodford, are displayed on a screen at the Royal Swedish Academy of Sciences in Stockholm on Oct. 12. AFP-Yonhap STOCKHOLM \u2014 American-born economists Robert E. Hall and Michael Woodford won the Nobel memorial…<\/p>\n","protected":false},"author":1,"featured_media":8211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"categories":[16,14],"tags":[],"class_list":["post-8210","post","type-post","status-publish","format-standard","has-post-thumbnail","category-korea","category-trending-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t