American economists Robert E. Hall of Stanford University and Michael Woodford of Columbia University have been jointly awarded the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. The Royal Swedish Academy of Sciences declared the prestigious award in Stockholm on Monday, October 12, 2026.
Who are the Two Economists who won Noble Prize 2026?
The two researchers were granted "for microeconomic foundations of macroeconomic stabilisation." Their revolutionary theoretical frameworks and empirical insights have massively advanced modern macroeconomic theory, fundamentally shaping how central banks and governments formulate stabilization policies.
In its official citation, the Nobel Committee underscored that Hall and Woodford created new macroeconomic models that bridge microeconomic decision-making with aggregate economic performance. According to the Academy, these models offer policymakers with the necessary analytical tools to develop well-timed fiscal and monetary measures capable of smoothing out economic fluctuations—effectively softening the severity of recessionary troughs and mitigating overheating during economic expansion peaks.
Robert E. Hall: Renowned for his seminal contributions to consumption theory, labor markets, and macroeconomics, Hall’s influential work established how household behavior, expectations, and market friction impact broader economic stability over time.
Michael Woodford: Famous for his foundational research in monetary economics, Woodford’s framework on interest rate policy and target-setting offered the structural backbone for modern monetary policy analysis, heavily impacted inflation targeting and central bank operational strategies globally.
All About the Nobel Economics Prize
Formally created in 1968 by Sweden’s central bank (Sveriges Riksbank) to mark its 300th anniversary, the Prize in Economic Sciences is felicitated alongside the traditional Nobel awards created under Alfred Nobel’s 1895 will.
The 2026 award carries a cash prize of 12 million Swedish kronor (approximately $1.2 million USD), which will be shared equally between the two laureates. This award marks the final announcement in the 2026 Nobel Prize season, after last week’s announcements for Medicine, Physics, Chemistry, Literature, and Peace.
John Hassler, chair of the Committee for the Prize in Economic Sciences, asserted in a news release: "The laureates' work has provided us with a stable theoretical foundation for the models that are now used by central banks and governments around the world.”
"With them, we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume," he said.
The economics prize is officially regarded as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel.