American Hall, Woodford win Nobel memorial prize in economics

Stockholm — American economists Robert E. Hall and Michael Woodford were awarded the Nobel Memorial Prize in Economics on Monday for their groundbreaking work on models that assist governments and central banks in managing economic shocks, such as energy crises and inflation. The Royal Swedish Academy of Sciences made the announcement in Stockholm, citing the laureates' contributions to helping policymakers navigate economic fluctuations.

The academy stated that "the laureates have helped us smooth out the economy's peaks and troughs." Hall, who is associated with Stanford University in California, and Woodford, affiliated with Columbia University in New York, both received the honor. Woodford participated in the announcement via phone from New York, expressing his surprise and gratitude.

He stated that "it's a tremendous honor, it's a surprise." John Hassler, chair of the Prize in Economic Sciences Committee, added in a press release that "the laureates' work has provided us with a stable theoretical foundation for the models that are now used by central banks and governments around the world," emphasizing that with their research, policymakers are better equipped to handle economic shocks.