Microfoundations and Stabilization Policy

Whereof one cannot speak, thereof one must be silent

The "Hall approach" is more effective. I am just not knowledgeable enough to be aware of how much advantage the government has actually taken from this.

I take issue with the word "substantially". The Great Recession happened at a time when the New Keynesian framework was accepted by mainstream macro. I think that it was caused by bad policies related to factors that should be included in any macro theory.

two richly deserving laurates

Hall showed consumers look ahead, so temporary checks are mostly saved. Woodford showed monetary policy works through the expected rate path, so credibility is the instrument: forward guidance at the lower bound, anchored expectations after the 2021-2022 inflation.
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The economy is an immensely complicated self-referential system, and stabilization remains difficult and elusive. The new macro models have improved our understanding and abilities, but remains to be done.

Not my area. I have learned a lot from both Bob and Mike. Less clear what central bankers have learned.

It may be debatable whether it has lead to a clearly better mechanical recipe for policy actions or stabilization (but "inflation targeting" may be one), it has certainly lead to clearer ways of thinking about complex policy questions, in fact, exposing that complexity.