Hall and Woodford Win Nobel Economics Prize 2026

Gylden medalje i Nobelstil ved siden af udjævnede økonomiske kurver, der symboliserer nobelprisen i økonomi 2026 for stabiliseringspolitik

October 12, 2026
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The Royal Swedish Academy of Sciences has awarded the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to American economists Robert E. Hall and Michael Woodford, “for microeconomic foundations of macroeconomic stabilisation,” the Academy announced in Stockholm on 12 October 2026.

Who are the laureates?

Robert E. Hall, born in 1943 in Palo Alto, California, is based at Stanford University in California. He earned his PhD from the Massachusetts Institute of Technology (MIT) in 1967.

Michael Woodford, born in 1955 in Chicopee, Massachusetts, is based at Columbia University in New York. He earned his PhD from MIT in 1983.

Why they won the Nobel Economics Prize 2026

According to the Royal Swedish Academy of Sciences, the laureates’ research generated a paradigm shift in stabilisation policy. Instead of relying on purely statistical links between macroeconomic variables, they built their models on microeconomic foundations — modelling how forward-looking households and businesses actually behave and how that behaviour affects the economy.

This approach produced the New Keynesian models that central banks and finance ministries around the world now use to fight recessions and runaway inflation.

Abstract illustration of a central bank interest-rate dial with columns representing monetary policy and macroeconomic stabilisation — Central banks around the world use models built on the laureates’ microeconomic foundations to set interest rates and fight inflation. (Illustration: Watan News)

“With them, we are better equipped”

“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. With them, we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume,” says John Hassler, Chair of the Committee for the Prize in Economic Sciences.

Prize money and the announcement

The prize amount is 12 million Swedish kronor, to be shared equally between the two laureates.

The announcement on 12 October 2026 in Stockholm is the last of the six 2026 Nobel announcements, following Medicine (5 October), Physics (6 October), Chemistry (7 October), Literature (8 October) and Peace (9 October).

Business-cycle chart with jagged peaks and troughs evened out by stabilisation policy — The laureates’ research helps policymakers smooth the peaks and troughs of the business cycle. (Illustration: Watan News)

FAKTA

Winners: Robert E. Hall (Stanford University, California) and Michael Woodford (Columbia University, New York)
Awarded for: microeconomic foundations of macroeconomic stabilisation
Prize amount: 12 million Swedish kronor, shared equally between the two laureates
Announced: 12 October 2026 in Stockholm by the Royal Swedish Academy of Sciences
Models used by: central banks and finance ministries around the world

Read more international economy coverage on Watan News English.