Newsflash: The Nobel Prize for economics has been awarded to Robert E Hall and Michael Woodford, for their work on the “microeconomic foundations of macroeconomic stabilisation”. [Reminder: As we flagged earlier, Woodford was among the predicted winners – he’s one of the architects of modern forward guidance, the idea that central banks can control the economy through influencing public expectations about inflation, rather than just through interest rates.] The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel is worth 12 million Swedish kronor (£900,000), plus the glory of course, and the knowledge that every pronouncement you make now comes with the authority of a Nobel Prize winner.
Extract — continue reading at the source.
