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- EDITORIAL: The art of economic policy
The editorial examines the research of this year's Nobel economics laureates, Robert E. Hall and Michael Woodford, which shows that stabilization policy depends on household and firm expectations as well as how central banks communicate with the public. Hall found that spending depends on expectations of one's financial situation rather than only current income, and that lower-income households spend a larger share of income gains, so targeted support could be more effective. Woodford found that firms set prices based on future costs and competitors' prices, and his work provided the basis for the forward guidance used by many central banks. The editorial argues this research is valuable for central banks and Taiwan's policymakers, and that it contradicts Federal Reserve Chair Kevin Warsh's plan to end forward guidance and shorten post-meeting statements and news conferences.
- Commentary : The Nobel Prize in economics is a message to the Fed
The Royal Swedish Academy of Sciences awarded the Nobel Prize in economics to Michael Woodford and Robert Hall, whose work helped establish forward guidance at central banks. The commentary contrasts this with Fed Chair Kevin Warsh, who has cut the size of post-meeting statements, shortened press conferences, declined to explain the Fed's reaction function, and declined to participate in the Summary of Economic Projections. Woodford's research shows communication lets markets price in policy in advance, as seen in the Fed's 2003 sentence that policy accommodation could be maintained for a considerable period, when the funds rate was 1% and 10-year yields had not responded. Under Ben Bernanke, guidance extended to mid-2013, which Woodford criticized for its 'fine print' escape hatches; he proposed a nominal GDP target, and the Fed moved toward a threshold target in late 2012. With inflation above the 2% target for six years, the author argues the SEP should be improved, such as by linking individual policymakers' rate projections to their forecasts rather than focusing on the median.
- Why do central banks target 2 % inflation instead of 0 %?
- Robert Hall , Michael Woodford Win 2026 Nobel Economics Prize
- UChicago Alum Michael Woodford Wins Nobel Prize in Economics
UChicago alumnus Michael Woodford, who graduated in 1977, shared the 2026 Nobel Memorial Prize in Economic Sciences on Monday with Stanford professor Robert Hall. Their work on macroeconomic stabilization proposed the New Keynesian model, which uses three equations to analyze fiscal and monetary policy together during large economic shocks and improves on earlier Keynesian models that failed to handle the 1970s oil shocks. The Nobel committee called it a macroeconomic stabilization framework that has become the main tool for policymakers today. Woodford taught at the University of Chicago until 1995, then moved to Princeton and later Columbia, where he now co-runs the Cognition and Decision Lab studying the role of attention in economic decisions.
- Nobel prize in economics awarded to Robert E. Hall and Michael Woodford
Robert E. Hall of Stanford University and Michael Woodford of Columbia University were jointly awarded the Nobel memorial prize in economics for their work on the microeconomic foundations that underpin the macroeconomic models used by central banks and governments to smooth out booms and busts. The Royal Swedish Academy said Keynesian models seemed to 'no longer work' during the 1970s oil crises, and the pair's research showed how households and businesses shape the economy through their expectations about the future. Their work also highlights the importance of central banks and governments clearly communicating their policy plans. The laureates will split a 12 million Swedish kronor ($1.2 million) prize.
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- Bank Profits Surge
The 9-month 2026 results show many banks continued to grow profits, with some posting record quarterly earnings. VPBank's pre-tax profit reached nearly VND 30,000 billion, up nearly 47%, equal to its full-year 2025 result and about 72.4% of its 2026 plan; Q3 pre-tax profit topped VND 11,000 billion. Techcombank posted VND 28,900 billion (up 23.7%), while LPBank reported VND 10,421 billion (up nearly 9%). SSI forecasts pre-tax profit of its monitored banks to rise 19.5% in 2026 before slowing to 15.4% in 2027, pressured by narrowing net interest margins and rising credit risk provisions. It also expects system-wide credit growth of 16-17% in 2027 and 17.9% for the monitored banks.
- World's Largest Gold Fund Dumps Over 10 Tonnes of Gold as Prices Slide
SPDR Gold Trust, the world's largest gold fund, continued net selling of nearly 12 tonnes of gold in the 22/10 session, bringing total sales over 2 sessions to nearly 15 tonnes and cutting its holdings to about 1,046 tonnes. Spot gold fell more than 2.8% to around USD 4,025 per ounce at the close of 22/10, and briefly dipped below USD 4,000 per ounce in the morning session of 23/10. Tensions in the Middle East pushed crude oil prices higher, raising concerns about inflation and further Fed tightening, and gold has still not attracted sustained safe-haven demand even as US Treasury yields fell. US September CPI rose 0.6% month on month and 3.7% year on year, while PPI rose 1.3% and 6.3%. Markets price about an 84% chance the Fed holds rates steady at its 27-28/10 meeting and a 16% chance of a 25 basis-point increase; September PCE data due on 29/10 is the next key factor to watch.
- Gold Prices Continue to Fall
On the morning of 23/10, domestic gold prices kept falling, with SJC bar prices varying by seller and the premium over world gold widening. Công ty TNHH Vàng bạc đá quý Sài Gòn listed SJC bars at VND 139-142 million per tael (buy-sell), down VND 300,000; Phú Quý was at VND 138-141.8 million, down VND 500,000; and Mi Hồng at VND 140-141.5 million, down VND 800,000. Gold rings also fell by varying amounts, with DOJI at VND 138-142 million and Phú Quý at VND 138-141 million per tael. World gold dropped USD 129 to around USD 3,992 per ounce, equal to about VND 125.3 million per tael, leaving SJC bars about VND 16.7 million per tael above the world price. The State Bank's central rate was set at 25,627 VND/USD, down 5 dong, while Vietcombank quoted 25,660-26,040 VND/USD (buy-sell).
- Company Linked to Billionaire Pham Nhat Vuong Announces Major Good News
VEFAC (ticker VEF), a Vingroup subsidiary, posted Q3 net revenue of nearly VND 77 billion, up 67% year on year, but a gross loss of about VND 27 billion as cost of sales from its exhibition business exceeded revenue. Q3 profit rose mainly thanks to a gross gain of about VND 65 billion from transferring some schools in a project to a partner, while financial income reached over VND 388 billion, mostly from loan and investment income. For the first nine months of 2026, after-tax profit was nearly VND 865 billion, down about 94% from VND 15,418 billion in the same period of 2025, as the prior year included large gains from transferring part of the Vinhomes Global Gate project. As of 30/9/2026, total assets stood at over VND 31,905 billion, up 36% from the start of the year, while total liabilities exceeded VND 24,364 billion, with short-term customer advances rising from VND 411 billion to over VND 8,373 billion.
- Lotte and Phat Dat Officially Break Ground on VND 60,000 Billion Mega Project in Thu Thiem 'Golden Land'
A joint venture between Lotte Group (South Korea) and Phát Đạt (HoSE: PDR) officially broke ground on 23/10 on Lotte Eco Smart City Thu Thiem in the Thu Thiem New Urban Area, HCMC, with total investment of about VND 60,000 billion. The project covers nearly 7.5 ha and will combine Grade A offices, retail, services, accommodation and housing, adjoining the central plaza and central lake of Thu Thiem. Phát Đạt holds 35% of Lotte Properties HCMC, the project developer, and will develop the housing blocks along with two towers (2-1 and 2-3) with about 219,722 m2 of floor area, while Lotte handles block 2-5. Lotte Properties HCMC paid VND 17,569 billion in land-use fees on 31/7/2026, and Phát Đạt completed its VND 7,666 billion payment to take its 35% stake. MB is funding all of Phát Đạt's capital contribution, while VietinBank and BIDV also support the project.
- International Business : Global stocks nosedive as Meta dents AI optimism
Global stocks retreated as tech earnings failed to ease concerns about the AI outlook, with MSCI's All-World index set for its largest daily fall in two weeks, down 0.4 per cent. Meta beat third-quarter revenue expectations, but its plan to issue non-voting stock revived worries about its mounting capital commitments, and a New Mexico judge ordered it to pay a $25 billion penalty in a data privacy case. Brent crude rose nearly 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia raised supply risks. Investors moved into government bonds, pushing the US 10-year yield down to 5.05%, below France's for the first time in 13 years, while French yields have climbed above 5% amid concerns over social unrest and debt. The France-Germany 10-year spread reached 177.7 basis points, its widest since 2011, while gold fell 1.8% to $4,070 an ounce.
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