The 2026 Nobel Prize in Economics: how expectations determine the effectiveness of stabilisation policies
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Bank of Spain blog post by Enrique Alberola explaining the contributions of Robert E. Hall and Michael Woodford, winners of the 2026 Nobel Prize in Economics. Their work shows how household and business expectations shape decisions and the effectiveness of stabilisation policies, and underpins the models used by central banks.
Key points
- Places both within the evolution of macroeconomics from Keynes to models with microeconomic foundations.
- Highlights their relevance for inflation analysis and monetary policy design.
Who is affected
Audience interested in economics and monetary policy.
Plain-language version
The Bank of Spain's blog explains the 2026 Nobel Prize in economics, won by Robert Hall and Michael Woodford. They showed that what we expect about the future changes what we do today, like how much we spend or how prices are set. Their ideas underpin the models central banks use to set interest rates.
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Summary produced with artificial intelligence from the official publication. It may contain errors: always check the original document.
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