Hall and Woodford win the Nobel memorial prize in economics
Robert E. Hall and Michael Woodford, both Americans, won the Nobel memorial prize in economics on Monday, AP, USA Today, The New York Times, Reuters, PBS and CBS reported. The Times quoted the committee as saying their insights left policymakers “better equipped to deal with shocks in the economy.” PBS said the work produced models that governments and central banks use to manage shocks such as energy crises and inflation. The Financial Times said their work helped central banks respond to the 2008 financial turmoil, and The Economist called them “New Keynesians.” NPR noted that the economics prize is the last of this year’s six.
Their models shape how central banks and finance ministries respond when prices jump or demand collapses. Energy shocks and inflation are live problems this year.
Central banks’ decisions on interest rates affect mortgage and credit-card costs. The prize honors the thinking behind those decisions.
The prize arrives as policymakers face an energy shock and high bond yields, which makes the topic feel less academic than usual. NPR’s sticky-price explanation is a good place to start for readers.
DailyDrop U.S. No. 9 · October 13, 2026