Summary of the Scientific Symposium “The Theory and Practice of Monetary Policy Today”

The Deutsche Bank Prize in Financial Economics is the most highly endowed international award given for outstanding academic achievements in the fields of money and finance with a practice and policy relevant orientation. It was established in 2005 by the Center for Financial Studies, in cooperation with Frankfurt University. The prize is sponsored by the Deutsche Bank Donation Fund and carries a cash award of € 50,000. It is awarded every two years.

The Deutsche Bank Prize for 2007 was awarded to Michael Woodford, Professor of Political Economy at Columbia University. Woodford received the prize in recognition of his fundamental contributions to the theory and practical analysis of monetary policy. According to the international prize jury, Woodford's research has led to a theory of monetary macroeconomics that holds widespread appeal for many researchers owing to its rigorous microeconomic foundations. The jury also praised the high practical value of Woodford's theories, based on which he analyzes the central role played by expectations and communication in the implementation of monetary policy.