Robert Hall and Michael Woodford awarded 2026 Nobel Prize in Economics

Oct 12, 12:17 PM2 min readCovered by 6 outlets

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Economists Robert Hall and Michael Woodford win the 2026 Nobel Prize for developing models that help central banks stabilize the economy during shocks.

American economists Robert Hall and Michael Woodford have won the 2026 Nobel economics prize for their research on microeconomic foundations and economic stability.

The Royal Swedish Academy of Sciences announced on Monday that Robert Hall and Michael Woodford are the joint recipients of the Sveriges Riksbank Prize in Economic Sciences. According to International, the pair were recognized for their work on the microeconomic foundations that help governments and central banks smooth out economic cycles of boom and bust.

The prize committee noted that the laureates developed models that examine the economy through the daily decisions of households and businesses rather than just broad statistical variables. Online Khabar reported that this research established the "New Keynesian" paradigm. John Hassler, chair of the prize committee, said the work provides tools to respond to shocks like energy crises or sudden changes in household consumption.

Hall is a professor at Stanford University and Woodford is a professor at Columbia University, per International. Their research also demonstrated how communication from central banks can influence public views of the future and guide the economy. According to OnlineKhabar English News, these models now serve as the theoretical foundation for policies used by central banks and governments worldwide.

The award includes a gold medal, a diploma, and a prize of 12 million Swedish kronor, roughly equivalent to $1.2 million. While the other Nobel prizes were established by Alfred Nobel's will, the economics prize was created in 1968 by Sweden’s central bank. The BBC News Nepal noted that this announcement concludes the Nobel prize reveals for the year, with a formal ceremony scheduled for December 10.

Background

The economics prize was established in 1968 following a donation from Sweden’s central bank. Last year, the award was given to Joel Mokyr, Philippe Aghion, and Peter Howitt for their research into how technological advances drive economic growth.