Robert Hall and Michael Woodford awarded the 2026 Nobel Prize in economics

On October 12, 2026, the Royal Swedish Academy of Sciences announced that American economists Robert E. Hall and Michael Woodford are the recipients of the 2026 Nobel Prize in Economic Sciences. The committee awarded them for their work on the "microeconomic foundations of macroeconomic stabilisation," recognizing their contribution to developing models that improve the efficacy of fiscal and monetary policy.

The research conducted by Hall and Woodford provides a theoretical basis for tools currently utilized by central banks and governments worldwide. According to John Hassler, chair of the Committee for the Prize in Economic Sciences, these models better equip authorities to manage economic shocks, such as energy crises and sudden fluctuations in household consumption, thereby reducing damaging volatility in the global economy.

The award, officially titled the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, carries a monetary prize of 12 million Swedish crowns, equivalent to approximately 1.2 million dollars. Established by the Swedish central bank in 1968, this prize is distinct from the five original awards created by Alfred Nobel. This announcement concludes the 2026 Nobel Prize cycle, following the distribution of awards in medicine, physics, chemistry, literature, and peace earlier in the week.