Their research has helped explain how decisions made by households and businesses influence the wider economy, providing a foundation for economic models used by governments and central banks.
Hall is a professor at Stanford University, while Woodford is a professor at Columbia University. Their research has contributed to a better understanding of how economies respond to shocks, including energy crises, changing consumer behaviour and other disruptions that can affect growth, employment and prices. Their work provides tools for analysing how economic policy can help stabilise activity during periods of uncertainty.
The laureates’ contributions are particularly relevant to the decisions made by central banks and governments when responding to inflationary pressures or economic slowdowns. By connecting individual economic decisions with broader macroeconomic outcomes, their work has helped strengthen the theoretical foundations used to assess monetary and fiscal policy.
The prize carries an award of 12 million Swedish kronor, approximately €1.1 million, and will be presented on December 10, the anniversary of Alfred Nobel’s death. Although commonly referred to as the Nobel Prize in Economics, it was established by Sweden’s central bank in 1968 and is formally awarded in memory of Nobel.
