US economists Robert E. Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economic Sciences for their work on microeconomic foundations of stabilization policy. The prize, worth $1.2 million, highlights their contributions to understanding how monetary and fiscal policies can stabilize economic fluctuations.
Hall, 83, a Stanford professor, and Woodford, 71, a Columbia professor, developed models that improve central banks' and governments' ability to respond to economic shocks. Their work, which builds on microeconomic principles rather than traditional Keynesian models, has influenced global economic policy.
The prize underscores the ongoing impact of their research, which has helped central banks navigate crises like the 2008 financial crisis. Their models, now widely used, provide a stable foundation for economic stabilization policies worldwide.
The economics prize, established by Sweden's central bank, is not part of the original five Nobel Prizes but is presented annually on December 10. Last year's prize went to researchers studying innovation's role in economic growth.