Robert Hall and Michael Woodford Win Nobel Prize in Economics

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 October 12, 2026. The laureates were recognized for their research into the microeconomic foundations of macroeconomic stabilization, which created the theoretical basis for models used by central banks and governments to manage economic volatility.

Robert E. Hall, a professor at Stanford University, focused his research on demand models, while Michael Woodford, a professor at Columbia University, analyzed the supply side and corporate price-setting behavior. Their combined work improved upon traditional Keynesian models by better accounting for how businesses and consumers make investment and spending decisions. The Academy noted that previous Keynesian recipes had limitations in curbing unemployment without raising inflation, particularly during the stagflation of the 1970s.

John Hassler, chair of the Committee for the Prize in Economic Sciences, stated that the laureates' work provides a stable foundation for dealing with shocks such as energy crises or sudden shifts in household consumption. The prize, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, includes 12 million Swedish kronor (approximately $1.2 million) to be split between the winners. The award will be presented on December 10.