Nobel prize awarded to 2 economists for their work on how to manage shocks

American economists Robert E. Hall and Michael Woodford won the Nobel Memorial Prize in economics Monday for their work on models that have helped governments and central banks manage economic shocks, such as energy crises and inflation. The Royal Swedish Academy of Sciences announced the winners in Stockholm, noting that their work created the theoretical foundation to better understand how consumers decide whether to save or spend, insights that make it easier for policymakers worldwide to stabilize economies after fluctuations.“The laureates’ research has made it possible to manage major macroeconomic crises far more effectively than before,” the Nobel committee wrote. “It has been hugely beneficial during the pandemic and the energy crises of recent years.”Hall is affiliated with Stanford University in California, and Woodford with Columbia University in New York.Woodford spoke to the committee by phone from New York: “It’s a tremendous honor. It’s a surprise.” Story continues below advertisement Duo overturned earlier economic assumptions For decades, governments responded to economic shocks by following the Depression-era prescriptions of the British economist John Maynard Ke...