Robert E Hall, Michael Woodford Win 2026 Economics Nobel for Work on Economic Stabilisation

American-born economists Robert E Hall and Michael Woodford won the 2026 Nobel Memorial Prize in Economic Sciences on Monday for their work on the microeconomic foundations of macroeconomic stabilisation.

The Royal Swedish Academy of Sciences announced the award in Stockholm, recognising their contributions to the theoretical foundations used to understand and manage economic fluctuations. Hall is affiliated with Stanford University in California, while Woodford is associated with Columbia University in New York.

“The laureates' work has provided us with a stable theoretical foundation for the models that are now used by central banks and governments around the world,” John Hassler, chair of the Committee for the Prize in Economic Sciences,"said in a news release.

He said their research had strengthened the ability of policymakers to respond to economic shocks, including energy crises and sudden changes in household consumption.

How Their Research Helps Policymakers

Macroeconomic stabilisation involves measures taken by governments and central banks to reduce economic fluctuations, manage inflation and support economic activity during periods of uncertainty.

The prize recognises work on the microeconomic foundations of these policies, linking decisions made by households and businesses to broader economic outcomes. Such theoretical models help policymakers assess how changes in spending, energy prices and other economic conditions can affect the wider economy.

Nobel Economics Prize and Previous Winners

The award is formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. Sweden's central bank established it in 1968 in memory of Alfred Nobel, the Swedish businessman and chemist who founded the Nobel Prizes.

Unlike the original Nobel Prizes, the economics award was not among the prizes specified in Nobel's will. However, it is presented alongside them during the annual Nobel Prize ceremonies.

Last year, three researchers received the economics award for their work explaining how innovation and new technologies drive economic growth and improve human welfare, while also making established businesses less competitive.

The 2026 prize carries a monetary award of 12 million Swedish kronor, equivalent to approximately $1.2 million. The award amount is shared when multiple laureates receive the prize.

The 2026 Nobel announcements in medicine, physics, chemistry, literature and peace were made the previous week. The laureates traditionally receive their awards on December 10, the anniversary of Nobel's death in 1896.

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