{
  "id": 13959409,
  "title": "‘New Keynesian’ economists win Nobel prize",
  "url": "https://urgent.news/2026/10/12/new-keynesian-economists-win-nobel-prize",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-12T12:48:16.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/new-keynesian-economists-win-nobel-prize/"
  },
  "original_language": "en",
  "account": "Two American economists, Robert E. Hall and Michael Woodford, have been awarded the Nobel Prize in Economics for their groundbreaking research on price stabilization across global economies. This prestigious award, officially known as \"The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel,\" recognizes their significant contributions to forecasting and economic policymaking.\n\nHall and Woodford have shaped the way policymakers set interest rates and announce spending packages. Woodford is particularly renowned for laying the foundations of \"forward guidance,\" a strategy employed by central banks to communicate potential future interest rate changes. On the other hand, Hall is credited with creating the \"fresh-water and salt-water\" divide in economics, which contrasts free-market perspectives with those advocating for a more active role from governments and central banks.\n\nThe pair will share the award, worth £900,000, and are considered key figures in the 'New Keynesian' tradition. This school of thought builds upon the ideas of British economist John Maynard Keynes, emphasizing how individual decisions by households and businesses can have wide-ranging economic consequences, including the delayed impact of market imperfections on prices and wages.\n\nThe 'New Keynesian' model revisits Keynesian concepts in light of the previous assumption that high inflation would lead to lower unemployment. The Royal Swedish Academy of Sciences explained their decision to award Hall and Woodford, stating that their research has sparked a paradigm shift in stabilization policy. According to the academy, \"New Keynesian models, a result of their research, allow us to explain and quantify how stabilization policy affects business cycles and are now used by central banks and finance ministries around the world.\"\n\nIn recent years, the Nobel Prize in Economics has recognized various fields of study. Last year, Joel Mokyr, Philippe Aghion, and Peter Howitt won the prize for their research on growth driven by technological progress and \"creative destruction.\" The Nobel Peace Prize was awarded to Navi Pillay, an International Criminal Court judge who has documented war crimes in conflicts and investigated the Rwandan genocide.",
  "summary": "Two American economists who research price stabilisation across global economies have won the Nobel prize for economics. Robert E. Hall and Michael Woodford were the joint winners of the prestigious award officially called “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel”. Hall and Woodford’s research on forecasting has influenced policymakers when [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}