Robert Hall and Michael Woodford have won the Nobel Prize in Economics for their studies on macroeconomic stability

American professors Robert Hall and Michael Woodford have won the Nobel Prize in Economics on Monday for their studies on the microeconomic foundations of macroeconomic stability. The distinction was announced by the Royal Swedish Academy of Sciences in Stockholm.

The research by the two economists has contributed to understanding how individual decisions and microeconomic mechanisms influence the evolution of the economy at the macroeconomic level and its stability.

The Nobel Prize in Economics, officially known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 by Sweden’s central bank and awarded for the first time in 1969. Unlike the other Nobel Prizes, it is funded by the Swedish central bank, not the Nobel Foundation.

The value of this year’s prize is 12 million Swedish kronor, equivalent to approximately 1.2 million dollars. The distinction recognizes contributions considered important to the development and understanding of economic science.