Michael Woodford has been named one of three winners of the The Frontiers of Knowledge Award, according to an announcement from the Fundacion BBVA, a science foundation based in Bilbao, Spain.
The award winners include Woodford, the John Bates Clark Professor of Political Economy at Columbia University and a member of the Center for Political Economy's Advisory Board, as well as to two others — Olivier Blanchard of the Paris School of Economics and MIT and Jordi Galí of CREI and Pompeu Fabra University — for “profoundly influencing modern macroeconomic analysis by establishing rigorous foundations for the study of business cycle fluctuations.”
The committee hailed the three economists as “central architects of the New Keynesian paradigm” for integrating “monopolistic competition and nominal and real rigidities into dynamic general equilibrium models with rational expectations.” This paradigm, they added, “has been widely used to analyze the stabilizing effect of monetary and fiscal policy on the cyclical movements of real economic activity, unemployment, and inflation.”
According to the announcement, Michael Woodford co-authored a paper in 1997 with Julio Rotemberg in which they made an econometric estimation of a quantitative model in the New Keynesian framework, laying a number of key theoretical grounds for the development of the New Keynesian model of monetary policy.
The announcement includes an interview with Woodford (see below).
