Robert Hall and Michael Woodford Win 2026 Nobel Prize in Economics

American economists Robert E. Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economic Sciences for their pioneering research on economic stabilisation. The announcement was made on October 12 by the Royal Swedish Academy of Sciences. Their work has helped improve how governments and central banks understand economic fluctuations and develop policies to address financial instability.

Robert Hall is associated with Stanford University, while Michael Woodford is a professor at Columbia University. Their research focuses on the microeconomic foundations of macroeconomic stabilisation, examining how the decisions of individual households and businesses influence the wider economy. This approach has strengthened economic models used to understand changes in inflation, consumption and overall economic activity.

Their contributions have influenced how central banks and governments respond to recessions, inflation and other economic shocks. By incorporating individual behaviour and expectations into economic models, their research has helped policymakers assess the effects of monetary and fiscal measures, including interest-rate decisions and government spending. These tools are important for maintaining economic stability during periods of uncertainty.

The two economists will share the prize money of 12 million Swedish kronor, equivalent to approximately US$1.2 million. The Economics Prize, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 and first awarded in 1969. Their recognition highlights the role of economic research in shaping policies that affect financial markets, businesses and households worldwide.