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2026 Nobel Prize in Economics Goes to Robert Hall and Michael Woodford

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In brief

The 2026 Nobel Prize in Economic Sciences has been awarded to American economists Robert E. Hall of Stanford University and Michael Woodford of Columbia University. The Royal Swedish Academy of Sciences honored them for building the "microeconomic foundations of macroeconomic stabilization," work now used by central banks worldwide to manage inflation, unemployment and economic shocks.

The Royal Swedish Academy of Sciences announced on Monday, October 12, 2026, in Stockholm that the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2026 goes to Robert E. Hall, 83, of Stanford University, and Michael Woodford, 70, of Columbia University, according to The Globe and Mail and NBC News.

The citation credits the two American economists with developing the "microeconomic foundations of macroeconomic stabilization," meaning they rebuilt models of the overall economy on the actual decisions of individual households and businesses, rather than on statistical correlations between broad economic indicators, NBC News and The Globe and Mail reported.

What the research covers

According to The Globe and Mail, the laureates' models incorporate concepts such as forward guidance — central banks signalling future interest-rate paths — "sticky" inflation, where prices adjust slowly to shifts in demand, and the measurement of the output gap, which assesses how much spare capacity or demand pressure exists in an economy.

NBC News reported that the Academy said these frameworks have become the theoretical foundation used by central banks and governments around the world to navigate disruptions such as energy crises or sudden changes in household spending.

John Hassler, chair of the prize committee, said the laureates' work means policymakers are "better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume," per The Globe and Mail.

Authorities shouldn't view stabilization of the economy as an exercise that is simply conducted by people pulling levers to control the economy independently of what people in the economy understand about this.

— Michael Woodford, 2026 Nobel laureate, quoted by The Globe and Mail

The announcement and the prize

NBC News reported that Woodford, reached by phone in New York when the prize was announced, called the recognition "a tremendous honor" and said he was surprised by the selection.

The prize carries an award of 12 million Swedish kronor, equivalent to roughly $1.2 million, to be shared between the two laureates, as reported by both The Globe and Mail and NBC News.

CNN Brasil, reporting from Brazil, likewise described Hall and Woodford as Americans honored for their contributions to macroeconomic stabilization research, noting the prize money figure and that the models they built examine how households' and firms' expectations about the future shape their consumption, saving and pricing decisions.

Background on the prize

The economics award, formally the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 by Sweden's central bank, according to NBC News. It is announced separately from the five prizes created in Alfred Nobel's will, but laureates are honored at the same ceremony in Stockholm on December 10, NBC News reported.

The Globe and Mail noted that the Hall-Woodford framework proved especially relevant during the 2008 financial crisis, when conventional interest-rate tools had been largely exhausted and policymakers needed models that accounted for how businesses and households would respond to unconventional measures.

Questions

Who won the 2026 Nobel Prize in Economics?
Robert E. Hall of Stanford University and Michael Woodford of Columbia University, both American economists, according to NBC News and The Globe and Mail.
What did Hall and Woodford win the prize for?
The Royal Swedish Academy of Sciences cited them for developing the microeconomic foundations of macroeconomic stabilization — economic models grounded in household and business decisions that are now used by central banks to manage inflation, unemployment and shocks.
How much money comes with the 2026 Nobel Economics Prize?
The prize totals 12 million Swedish kronor, about $1.2 million, shared between the two laureates, per The Globe and Mail and NBC News.
When was the prize announced?
The Royal Swedish Academy of Sciences announced the award on Monday, October 12, 2026, in Stockholm.
Is the Nobel Economics Prize an original Nobel Prize?
No. It is the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, established by Sweden's central bank in 1968 and awarded alongside the original Nobel Prizes, as reported by NBC News.

How the world is telling it

Sources

  1. The Globe and Mail — Nobel Prize in Economics awarded to Robert Hall and Michael Woodford for work on stabilizing economies
  2. NBC News — Americans Hall and Woodford win 2026 Nobel economics prize
  3. CNN Brasil — Americanos Hall e Woodford ganham Nobel de Economia de 2026

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