In Other News · United States · Business

Source: Axios

Stanford University's Robert E. Hall and Columbia University's Michael Woodford won the Nobel Prize in economics for research on how policymakers can stabilize economies, the Royal Swedish Academy of Sciences said on Monday.Why it matters: Their work helped shape how central banks set interest rates and communicate policy. The win comes as those institutions fight energy-driven inflation and risks to economic growth.Zoom out: For decades, policymakers relied on economic models that linked higher inflation with lower unemployment. But that framework broke down during the 1970s stagflation when both prices and joblessness surged at the same time."The solution by Robert Hall and Michael Woodford was to build a new framework ground up," Timo Boppart, a member of the Nobel economics prize committee, said on Monday.What they're saying: Woodford, who called into Monday's press conference hosted by the committee, said he was "elated" by the win."It's a tremendous honor. It's a surprise — but I'm feeling very good about it," Woodford said.The intrigue: Asked by a reporter about the threat to the global economy, Woodford said the Middle East conflict has disrupted energy markets and driven price changes with consequences far beyond the region.He pointed to the 2008 financial crisis as a...