American economists Hall and Woodford awarded 2026 Nobel Prize in Economics
The Royal Swedish Academy of Sciences awarded the 2026 Nobel Memorial Prize in Economic Sciences to Robert E. Hall of Stanford University and Michael Woodford of Columbia University on 12 October for their microeconomic models that help stabilise economies. Their work provides the theoretical foundation now used worldwide by central banks to respond to economic shocks. They will share 12 million Swedish kronor, approximately $1.2 million.
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The Royal Swedish Academy of Sciences awarded the 2026 Nobel Memorial Prize in Economic Sciences to American economists Robert E. Hall and Michael Woodford on 12 October. Hall is based at Stanford University, while Woodford is at Columbia University. The academy recognised their development of microeconomic models that help governments and central banks stabilise their economies when faced with shocks such as energy crises.
According to the academy, Hall and Woodford's central insight concerns how households and businesses make decisions. They demonstrated that economic agents are "forward-looking," meaning they consider future conditions when making choices today. This understanding allows governments and central banks to influence economic outcomes by clearly communicating their fiscal and monetary plans to the public.
Hall was born in Palo Alto, California, in 1943, and Woodford was born in Chicopee, Massachusetts, in 1955. They will share the prize money of 12 million Swedish kronor, approximately $1.2 million, each receiving 6 million kronor. John Hassler, chair of the Committee for the Prize in Economic Sciences, noted that their research leaves policymakers "better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume."
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