Robert E. Hall and Michael Woodford win Nobel memorial prize in economics

American economists Robert E. Hall and Michael Woodford have been awarded the Nobel Memorial Prize in Economics. They were recognized for their work on the microeconomic foundations of macroeconomic stabilization. Hall is a professor at Stanford University in California, while Woodford holds a position at Columbia University in New York.

The prestigious award was announced by the Royal Swedish Academy of Sciences in Stockholm. According to John Hassler, chair of the Prize in Economic Sciences Committee, "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. With them, we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume."

The Nobel Prize in Economics, officially named the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 to honor the Swedish inventor and chemist who also founded the Nobel Prizes. The prize money for this year is 12 million Swedish kronor, approximately $1.2 million, regardless of whether it is awarded to an individual, a small group of laureates, or an organization.