Americans Hall and Woodford win economics Nobel for stabilisation models
Summary
Americans Robert Hall and Michael Woodford have won the Nobel economics prize for research on stabilisation models that help guide monetary and fiscal policy during recessions and crises. Their work has influenced central banks by showing how policy communication and forward-looking households can reduce economic fluctuations.
Key Points
- Robert Hall and Michael Woodford received the Nobel economics prize for work on stabilisation models in monetary and fiscal policy.
- The Royal Swedish Academy said their models helped replace older Keynesian approaches that no longer worked well after the 1970s oil shocks.
- Woodford said central banks have used more explicit forward guidance since the 2008 financial crisis to improve stabilisation.
- The prize comes amid renewed pressure on the US Federal Reserve from President Donald Trump over interest rates.
