Hall and Woodford awarded Nobel Prize in Economics for developing a model of stability in the economy

लगानी न्यूज

२६ आश्विन २०८३, सोमबार १६:४९October 12, 2026

. American economists Robert Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economics.

The award has been given to them for their research on how to maintain stability by controlling fluctuations in the economy through monetary and fiscal policy.TAG_OPEN_div_34

The Royal TAG_OPEN_div_32 Swedish Academy of Sciences said in a statement that the prize-winning research provides a strong theoretical basis for the economic model used by central banks and governments around the world.

John Hustler, chair of the prize committee, said their research “has made policymakers better able to cope with economic shocks, such as energy crises or sudden changes in household consumption.”TAG_OPEN_div_30

During the oil crisis of the 1970s, the traditional Keynesian model was not effective in determining when and how to intervene in policy to deal with recessions and other economic fluctuations. Hall and Woodford then contributed to the development of new methods and tools that could identify effective policy measures to maintain economic stability.

According to the Academy, they took an approach to build a model based on microeconomics, not just relying solely on the statistical relationship between macroeconomic indicators such as inflation, production, and consumption. This approach helps to understand the decisions made by individual households and businesses and how their overall impact changes the economy.

The Nobel Prize in Economics is not one of the five original prizes mentioned in the 1895 will of Swedish scientist Alfred Nobel. Nobel died in 1896. Established in 1968 with the support of the Swedish Central Bank, the prize is formally called the ‘Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel’.TAG_OPEN_div_24

TAG_OPEN_div_22 Since it was not established in the original will of the Nobel, some critics have called it a ‘fake Nobel’. However, its winner is selected by the Royal Swedish Academy of Sciences, and the selection process is similar to that of other Nobel Prizes.

Last year, the Nobel Prize in Economics was awarded to American-Israeli economist Joel Mokir, French economist Philippe Agione and Canada’s Peter Hauit for their research on how technology drives economic growth.TAG_OPEN_div_20

Like other Nobel Prizes, the prize in economics includes a certificate, a gold medal, and a cash prize. The prize winner will receive the award at a formal ceremony on December 10. December 10 is the anniversary of the death of Alfred Nobel.TAG_OPEN_div_18