Michael Dean Woodford

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Michael Woodford
Born1955 (age 68–69)
Academic career
InstitutionColumbia University
Monetary policy
School or
New Keynesian economics
Alma materYale University
University of Chicago
Timothy Kehoe[1]
AwardsDeutsche 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 B.A. from the University of Chicago (1977) and a J.D. from Yale Law School (1980).[2] He completed his Ph.D. in economics at MIT in 1983.[3]

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 was 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.[4]

Theoretical contributions[edit]

Woodford's early research topics included sunspot equilibria,[5] and imperfect competition.[6] 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.[7] Since then he has used this framework to study many topics related to monetary policy, including the fiscal theory of the price level,[8] the effectiveness of monetary policy as consumers use more credit and less cash,[9] and inflation targeting rules.[10] 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.[11][12] 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."[4] The title Interest and Prices is a direct translation of Geldzins und Güterpreise the title of a book published by Wicksell in German 1898 and translated into English 1923.[13][14]


  1. ^ Woodford, Michael (1983), Essays in intertemporal economics. Ph.D. dissertation, Massachusetts Institute of Technology.
  2. ^ "Curriculum Vitae MICHAEL WOODFORD July 2017" (PDF). columbia.edu.
  3. ^ Woodford, Michael Dean (1983), Essays in Intertemporal Economics. Ph.D. dissertation, Massachusetts Institute of Technology.
  4. ^ a b "Michael Woodford: The Prize Winner 2007". October 4, 2007.
  5. ^ Woodford, Michael (1990). "Learning to believe in sunspots". Econometrica. 58 (2): 287–307. doi:10.2307/2938205. JSTOR 2938205.
  6. ^ Rotemberg, Julio; Woodford, Michael (1995). "Dynamic general equilibrium models with imperfectly competitive product markets". In Cooley, Thomas (ed.). Frontiers of Business Cycle Research. Princeton University Press. ISBN 0-691-04323-X.
  7. ^ Rotemberg, Julio J.; Woodford, Michael (1997). "An optimization-based econometric framework for the evaluation of monetary policy" (PDF). NBER Macroeconomics Annual. 12: 297–346. doi:10.1086/654340. JSTOR 3585236. S2CID 154438345.
  8. ^ Woodford, Michael (2001). "Fiscal requirements for price stability" (PDF). Journal of Money, Credit, and Banking. 33 (3): 669–728. doi:10.2307/2673890. JSTOR 2673890. S2CID 2836780.
  9. ^ Woodford, Michael (1998). "Doing without money: controlling inflation in a post-monetary world" (PDF). Review of Economic Dynamics. 1 (1): 173–219. doi:10.1006/redy.1997.0006. S2CID 15413387.
  10. ^ Giannoni, Marc P.; Woodford, Michael (2005). "Optimal inflation targeting rules". In Bernanke, Ben; Woodford, Michael (eds.). The Inflation-Targeting Debate. Chicago: University of Chicago Press. pp. 93–172. ISBN 0-226-04472-6.
  11. ^ Woodford, Michael (2003). Interest and prices: Foundations of a theory of monetary policy. Princeton, New Jersey: Princeton University Press. ISBN 0-691-01049-8.
  12. ^ Green, Edward (2005). "A review of Interest and Prices". Journal of Economic Literature. 43: 121–134. doi:10.1257/0022051053737799.
  13. ^ kanopiadmin (2014-08-18). "Interest and Prices". Mises Institute. Retrieved 2021-11-16.
  14. ^ Sanger, C. P.; Wicksell, Knut (September 1898). "Geldzins und Guterpreise" (PDF). The Economic Journal. 8 (31): 384. doi:10.2307/2956550. JSTOR 2956550.

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