US economists Robert Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economics for their work on macroeconomic stabilisation. The prize, worth $1.2 million, was announced by the Royal Swedish Academy of Sciences. Their research has improved the ability of central banks and governments to manage economic fluctuations.
Hall and Woodford developed new macroeconomic models that focus on microeconomic foundations, enabling more effective fiscal and monetary policies. Their work has been crucial in addressing economic shocks, such as energy crises and changes in consumer behavior. The models have been widely adopted by financial institutions worldwide.
The Nobel Prize in Economics is awarded by the Sveriges Riksbank and is not part of the original five Nobel prizes established by Alfred Nobel. This year's winners join a list of previous laureates, most of whom are from the United States. The prize highlights the importance of microeconomic insights in shaping economic policy.
The 2026 Nobel Prize in Economics follows the announcement of other Nobel awards, including the Peace Prize won by South African jurist Navi Pillay. The Economics Prize is the final award of the year and is presented on December 10, the anniversary of Alfred Nobel's death.