American economists Robert E. Hall and Michael Woodford win 2026 Nobel Prize in Economics

Stokholm, October 12
The 2026 Nobel Prize in Economics has been awarded to American economists Robert E. Hall and Michael Woodford for developing macroeconomic models that help policymakers stabilise economies during booms and recessions.

The Royal Swedish Academy of Sciences said their work has strengthened the theoretical basis for fiscal and monetary policies and improved governments’ and central banks’ ability to respond to economic fluctuations.

The Nobel Committee said, the economists developed models based on how households and businesses make decisions about spending, saving, investment and pricing, taking future economic conditions into account. Their research has helped policymakers understand how government policies and central bank signals influence economic activity. The models are now widely used by central banks and governments around the world.

Robert E. Hall is a professor at Stanford University, while Michael Woodford is a professor at Columbia University. The prize carries an award of 12 million Swedish kronor, which will be shared equally between the two laureates.