DOMINANT ANGLE
Stockholm presents the economics Nobel as a proven tool: the models of Hall and Woodford, it is said, made it possible to get through the pandemic and the energy crises without a relapse into the 1970s.
Dominant angle identified — does not reflect unanimity of this country’s media
KEY POINTS
- 01
Robert E. Hall (83, Stanford) and Michael Woodford (Columbia) share twelve million Swedish kronor.
- 02
John Hassler, chair of the committee, says their work gives a stable theoretical basis to the models of central banks and governments.
- 03
According to the citation quoted by Svenska Dagbladet, the pandemic and the energy crises did not have effects as lasting on growth and inflation as in the 1970s.
ANALYSIS
Stockholm, 13 October 2026. On Monday 12 October, the Royal Swedish Academy of Sciences awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Robert E. Hall, 83, a professor at Stanford, and Michael Woodford, born in 1955, a professor at Columbia. They share twelve million kronor. Expressen reproduces the citation: they developed a new kind of macroeconomic models that markedly improved the scope for pursuing effective stabilisation policy, that is, smoothing the troughs and peaks of activity through fiscal and monetary measures.
The Swedish press first stresses practical use. John Hassler, chair of the prize committee, says the laureates' work gave "a stable theoretical basis" to the models used today by central banks and governments around the world. According to him, these models make it possible to better manage disruptions, such as energy crises or sudden shifts in household consumption. Svenska Dagbladet headlines a "paradigmskifte" (paradigm shift) in stabilisation policy, a phrase taken from the Academy's citation.
The daily insists on the historical comparison. According to the citation, the pandemic and the energy crises of recent years did not have consequences as lasting for growth and inflation as the critical periods of the 1970s. Per Krusell, a professor at Stockholm University and secretary of the committee, tells the TT news agency in summary that this work helped stabilise the economy, bring unemployment quickly back to normal levels, and likewise for inflation.
Michael Woodford, who spoke by video link after the announcement, says he is both honoured and a little surprised: "But it feels very good," he says. Both outlets relay this remark without comment.
The account is that of a Swedish institution presenting its own choice: the dominant voice is that of the committee, and Expressen recalls that the prize was established by the Riksbank in 1968. Neither text gives a voice to an economist critical of New Keynesian models or discusses their limits, and the American nationality of the laureates is not commented on beyond their university affiliations.
