The Nobel prize winners for 2026 rebuilt stabilization policy—Here’s why that matters
Subsequently, Hall and Frederic Mishkin studied food expenses among 2,309 US families from 1969 to 1975. They found that it responded more strongly to permanent rather than brief income changes, but was also more responsive to current income than the theory predicted. Their model suggested that roughly one-fifth of consumption tracked current income, consistent with households living hand-to-mouth.
