This year’s laureates in economic sciences, Robert E. Hall and Michael Woodford, have developed new macroeconomic models that have significantly improved our ability to implement effective stabilisation policy. On the basis of these models, well-timed fiscal and monetary policy measures can reduce the economy’s peaks and troughs.
Economists Robert E. Hall and Michael Woodford won the Economics Nobel, known formally as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, the prize committee announced on October 12.
