{
  "id": 14081395,
  "title": "How to keep economy on even keel",
  "url": "https://urgent.news/2026/10/13/how-to-keep-economy-on-even-keel",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-13T00:45:22.000Z",
  "source": {
    "name": "The Indian Express",
    "slug": "the-indian-express",
    "url": "https://indianexpress.com/article/opinion/editorials/nobel-prize-in-economics-2026-robert-hall-michael-woodford-10918626/"
  },
  "original_language": "en",
  "account": "Robert E Hall of Stanford University and Michael Woodford of Columbia University have been awarded the Nobel Prize in Economics for their work on the microeconomic foundations of macroeconomic stabilization. Stabilization refers to the actions taken by governments and central banks to minimize fluctuations in an economy. These policies can include tax breaks from governments or adjustments in interest rates by central banks.\n\nThe contribution of Hall and Woodford is to enhance our understanding of when and how to make these decisions to prevent an economy from oscillating between prolonged periods of sluggish growth and high, persistent inflation. Their work is rooted in the idea proposed by John Maynard Keynes, which posits that governments can step in to help mitigate economic fluctuations.\n\nKeynes's insight proved beneficial during the Great Depression, as economies learned to draw on government intervention to stabilize economies. For a period, the approach of intervening with tax cuts and interest rate reductions when an economy slowed down, and cutting rates to curb inflation seemed to work effectively. However, during the 1970s, repeated oil price shocks led to high unemployment and inflation simultaneously. This period saw the Keynesian remedy fail to provide a solution and, in fact, many began to view government intervention as the root of the problem rather than the solution.\n\nHall and Woodford's research demonstrated how economic models could be redesigned to revitalize stabilization policy. They examined the demand side of the economy, specifically how individuals make consumption decisions (Hall's contribution), and the supply side, particularly how businesses set prices (Woodford's contribution). This comprehensive approach provided a more robust understanding of economic fluctuations, which has helped governments worldwide avoid the mistakes made in the past.",
  "summary": null,
  "key_points": [
    "Robert E Hall and Michael Woodford awarded Nobel Prize in Economics",
    "Their work enhances understanding of stabilizing economic fluctuations",
    "Hall focused on consumption decisions, Woodford on price-setting"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Indian Express",
        "title": "2026 Economics Nobel: How to keep an economy stable using policy tools",
        "url": "https://urgent.news/2026/10/13/2026-economics-nobel-how-to-keep-an-economy-stable-using-policy-tools",
        "published": "2026-10-13T00:36:01.000Z"
      }
    ]
  },
  "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."
}