Statements by members of the jury

Volker Wieland (Chairman of the jury 2007, Professor of Monetary Theory and Policy at Frankfurt University, CFS Director):

“Michael Woodford has developed a theory of monetary macroeconomics that holds widespread appeal to academic researchers owing to its rigorous microeconomic foundations. Woodford has proved the immense practical value of his theory by analyzing the central role played by expectations and communication in the implementation of monetary policy. Woodford’s work, summarized in his influential monograph “Interest and Prices: Foundations of a Theory of Monetary Policy”, has quickly become the standard reference for monetary theory and analysis among academic economists and their colleagues at central banks.”

Patrick Lane (The Economist, Economics Editor):

"Michael Woodford is a worthy winner of this year’s Deutsche Bank prize in financial economics. His work on monetary policy has become highly influential. The emphasis he lays on the importance of expectations to the conduct of policy is especially notable. The same is true of his work on central banks’ transparency and communication—a topic of increasing interest not only to central banks themselves but also to those who watch them in financial markets and the media."

Lars E.O. Svensson (Professor of Economics at Princeton University):

"The ideal DB Prize recipient is a person who has made outstanding scientific contributions in the area of finance, money, and macroeconomics that are of great relevance and importance for policy or market practice. Nobody fulfils these criteria better than Michael Woodford. He has made a series of outstanding scientific contributions. For many years he has worked on improving the microfoundations for monetary macroeconomics and during this work developed and refined the theory of the so-called New Keynesian model and provide the first empirical estimates of its parameters. His work is summarized in his monumental monograph, Interest and Prices: Foundations of a Theory of Monetary Policy, which is already immensely influential and will be of lasting value. Furthermore, his research is of great practical importance for policymakers. It has provided the foundations for the latest generation of empirical dynamic stochastic general equilibrium models that are now being developed by the most advanced central banks for policy simulations and forecasting. It has also provided central bankers with a practical framework of how to think about policy and the transmission mechanism of monetary policy, in particular the fundamental role of expectations and transparency in implementing monetary policy. His research is now influencing the conduct of monetary policy in many different ways all over the world."

Norbert Walter (Chief Economist of Deutsche Bank Group and CEO of Deutsche Bank Research):

“Michael Woodford combines theory and practice in a very particular way: Not only are his excellent results of research important for science – they are also of concrete use in monetary policy around the globe. I know no other person in this field of research, whose findings were more crucial for discussions on monetary policy in the past decade. Many central banks are keen on winning him for cooperations to improve their analyses in monetary policy. In addition, his findings also have the potential to be adapted to other political fields. The Deutsche Bank Prize in Financial Economics will provide an important contribution towards making Michael Woodford more popular – even beyond the circle of experts.” 

 

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