Hall and Woodford win Nobel in Economics for smoothing boom-bust cycles

Hassler says work leaves central banks and governments better equipped for shocks

The Committee for the Prize in Economic Sciences awarded the Nobel Prize in Economics on Monday to Robert E. Hall of Stanford University and Michael Woodford of Columbia University.

Hall and Woodford were recognized for research on smoothing boom-and-bust cycles in economic activity, with the stated goal of limiting unemployment and inflation.

The work of Hall and Woodford has enabled central banks and governments to be “better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume,” John Hassler, chair of the Committee for the Prize in Economic Sciences, said in a news release.