Two scholars working at American universities who reinterpreted Keynesian thought after the oil crisis in the 1970s won the Nobel Prize in Economics. Robert E. Hall of Stanford University and Michael Woodford of Columbia University will share the SEK 12 million prize. The Royal Swedish Academy of Sciences issued a statement in Stockholm on Monday saying that the two were awarded for their research on “the microeconomic basis of macroeconomic stabilization.” “This is a huge honor. It was really unexpected, but I'm feeling really good right now,” Woodford said over the phone at the press conference. Hall was honored for a paper published in 1978 that examined the phenomenon that consumers tend to maintain stable consumption levels. Woodford later developed what is known as the New Keynesian model, which has had a significant impact on global policymakers since then, and continues to this day. John Hassler, chairman of the Nobel Prize in Economics jury, said, “The research of the two winners provides a stable theoretical foundation for the models used by central banks and governments around the world today.

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