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Two US economists win the Nobel for their work on economic shocks

Two US economists win the Nobel for their work on economic shocks

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October 12th, 2026

Two US economists win the Nobel for their work on economic shocks

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Please note: This article has been simplified for language learning purposes. Some context and nuance from the original text may have been modified or removed.

🇺🇸 English

American economists Robert E. Hall and Michael Woodford won the Nobel Memorial Prize in Economics on Monday.

Los economistas estadounidenses Robert E. Hall y Michael Woodford ganaron el lunes el Premio Nobel Memorial de Economía.

The Royal Swedish Academy of Sciences announced the prize in Stockholm.

La Real Academia Sueca de Ciencias anunció el premio en Estocolmo.

The jury praised their work on models for managing economic shocks.

El jurado destacó su trabajo sobre modelos para gestionar shocks económicos.

These shocks include energy crises and inflation.

Estos shocks incluyen crisis energéticas e inflación.

According to the Nobel committee, their research helped handle big economic crises better than before.

Según el comité Nobel, su investigación permitió manejar grandes crisis macroeconómicas mejor que antes.

It was also very useful during the pandemic and the recent energy crises.

También fue muy útil durante la pandemia y las crisis energéticas recientes.

Hall is 83 years old and works at Stanford University.

Hall, de 83 años, trabaja en la Universidad de Stanford.

Woodford was born in 1955 and works at Columbia University.

Woodford, nacido en 1955, trabaja en la Universidad de Columbia.

Both said the prize was a surprise.

Ambos dijeron que el premio fue una sorpresa.

Woodford called it a huge honor.

Woodford lo llamó un honor tremendo.

Hall explained that he spent his career understanding how the economy works.

Hall explicó que dedicó su carrera a entender cómo funciona la economía.

He also wanted to check if his ideas were new, correct, and important.

También quería comprobar si sus ideas eran nuevas, correctas e importantes.

For many years, governments followed Keynesian ideas.

Durante décadas, los gobiernos siguieron las recetas keynesianas.

They lowered interest rates and taxes. They also increased public spending.

Bajaron las tasas y los impuestos, y aumentaron el gasto público.

But the stagflation of the 1970s showed that this formula was too simple.

Pero la estanflación de los años 70 mostró que esa fórmula era simplista.

Hall and Woodford improved the Keynesian model. They each made separate contributions.

Hall y Woodford mejoraron el modelo keynesiano con contribuciones separadas.

The Nobel committee said their approach is based on how households and companies make decisions.

El comité Nobel dijo que su enfoque se basa en las decisiones de hogares y empresas.

This created a big change in the theory of stabilization policy.

Esto generó un cambio de paradigma en la teoría de la política de estabilización.

Hall studied how consumers decide to spend based on what they expect to earn in the future.

Hall estudió cómo los consumidores deciden gastar según sus expectativas de ingresos futuros.

He concluded that predicting this spending is almost impossible.

Concluyó que pronosticar ese gasto es casi imposible.

Woodford showed that companies set prices based on where they think interest rates will go.

Woodford estableció que las empresas fijan precios según dónde creen que irán las tasas de interés.

So, according to the committee, central banks must clearly and believably explain what they plan to do.

Por eso, según el comité, los bancos centrales deben comunicar con claridad y credibilidad lo que planean hacer.

The economics prize is given together with the other Nobel prizes on December 10.

El premio de economía se entrega junto con los demás Nobel el 10 de diciembre.

This year it comes with 12 million Swedish crowns, about 1.2 million dollars.

Este año está dotado con 12 millones de coronas suecas, unos 1,2 millones de dólares.

October 12th, 2026

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