Michael Woodford (economist)

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For other people named Michael Woodford, see Michael Woodford (disambiguation).
Michael Woodford
Born 1955 (age 58–59)
Chicopee, Massachusetts
Nationality United States
Institution Columbia University
Field Macroeconomics
Monetary policy
School/tradition New Keynesian economics
Alma mater Yale University
MIT
University of Chicago
Awards Deutsche Bank Prize (2007)
Information at IDEAS/RePEc

Michael Dean Woodford (born 1955) is an American macroeconomist and monetary theorist who currently teaches at Columbia University.

Academic career[edit]

Woodford holds an undergraduate degree from the University of Chicago and a law degree from Yale, and completed his economics doctorate at MIT in 1983.[1] He began his teaching career at Columbia, and then taught at Chicago and Princeton before returning to Columbia to accept the John Bates Clark chair in 2004. He is one of relatively few economists to have been awarded the John D. and Catherine T. MacArthur Foundation Prize Fellowship, which financed his research from 1981 to 1986. In 2007, he was awarded the Deutsche Bank Prize.[2]

Theoretical contributions[edit]

Woodford's early research topics included sunspot equilibria,[3] and imperfect competition.[4] Thereafter he began to work on macroeconomic models with sticky prices; together with Julio Rotemberg he developed one of the first microfounded New Keynesian macroeconomic models.[5] Since then he has used this framework to study many topics related to monetary policy, including the fiscal theory of the price level,[6] the effectiveness of monetary policy as consumers use more credit and less cash,[7] and inflation targeting rules.[8] Michael Woodford has especially praised Knut Wicksell's advocacy of using the interest rate to maintain price stability, noting that this was a remarkable insight at a time when most monetary policy was based on the gold standard (Woodford, 2003, p. 32). Woodford calls his own framework 'neo-Wicksellian', and he titled his textbook on monetary policy in homage to Wicksell's work.

Interest and Prices[edit]

Woodford is probably best known as the author of an advanced textbook on monetary macroeconomics entitled Interest and Prices: Foundations of a Theory of Monetary Policy.[9][10] The book has, in the words of the Deutsche Bank Prize Committee, “quickly become the standard reference for monetary theory and analysis among academic economists and their colleagues at central banks.”[2]

References[edit]

  1. ^ Woodford, Michael Dean (1983), Essays in Intertemporal Economics. Ph.D. dissertation, Massachusetts Institute of Technology.
  2. ^ a b "Michael Woodford: The Prize Winner 2007". October 4, 2007. 
  3. ^ Woodford, Michael (1990). "Learning to believe in sunspots". Econometrica 58 (2): 287–307. JSTOR 2938205. 
  4. ^ Rotemberg, Julio; Woodford, Michael (1995). "Dynamic general equilibrium models with imperfectly competitive product markets". In Cooley, Thomas. Frontiers of Business Cycle Research. Princeton University Press. ISBN 0-691-04323-X. 
  5. ^ Rotemberg, Julio J.; Woodford, Michael (1997). "An optimization-based econometric framework for the evaluation of monetary policy". NBER Macroeconomics Annual 12: 297–346. JSTOR 3585236. 
  6. ^ Woodford, Michael (2001). "Fiscal requirements for price stability". Journal of Money, Credit, and Banking 33 (3): 669–728. JSTOR 2673890. 
  7. ^ Woodford, Michael (1998). "Doing without money: controlling inflation in a post-monetary world". Review of Economic Dynamics 1 (1): 173–219. doi:10.1006/redy.1997.0006. 
  8. ^ Giannoni, Marc P.; Woodford, Michael (2005). "Optimal inflation targeting rules". In Bernanke, Ben; Woodford, Michael. The Inflation-Targeting Debate. Chicago: University of Chicago Press. pp. 93–172. ISBN 0-226-04472-6. 
  9. ^ Woodford, Michael (2003). Interest and prices: Foundations of a theory of monetary policy. Princeton, New Jersey: Princeton University Press. ISBN 0-691-01049-8. 
  10. ^ Green, Edward (2005). "A review of Interest and Prices". Journal of Economic Literature 43: 121–134. doi:10.1257/0022051053737799. 

External links[edit]