American economists Robert E. Hall and Michael Woodford have been awarded the Nobel Memorial Prize in Economic Sciences for their work on macroeconomic models that help governments and central banks manage economic shocks. Their research provided insights into how consumers decide whether to save or spend, giving policymakers worldwide tools to stabilize economies after fluctuations. The Royal Swedish Academy of Sciences stated that their contributions made it possible to manage major macroeconomic crises far more effectively, particularly during the Covid-19 pandemic and recent energy crises. Hall, from Stanford University, demonstrated that consumer spending is largely unpredictable, while Woodford, from Columbia University, established that businesses set prices based on their expectations about future interest rates. The prize amount is 12 million Swedish kronor, approximately $1.2 million.
Source: Read the original article
