Robert E. Hall’s and Michael Woodford’s research has generated a paradigm shift in stabilisation policy. New Keynesian models, a result of their research, allow us to explain and quantify how stabilisation policy affects business cycles and are now used by central banks and finance ministries around the world. Since the laureates’ works were published, the models have been developed and refined; this process can be expected to continue as our economies keep changing. The models can easily be adapted to the varying circumstances encountered by households and businesses. The laureates’ research has made it possible to manage major macroeconomic crises far more effectively than before. It has been hugely beneficial during the pandemic and the energy crises of recent years, which have not had such long-term consequences for growth and inflation as in the critical periods of the 1970s. We have not become mired in a catastrophic economic depression like that of the 1930s. Recessions and episodes of high inflation have not disappeared, but they are less long-lasting.