Robert E Hall, Michael Woodford awarded Nobel Prize in Economics
What's the story
The Royal Swedish Academy of Sciences has awarded the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Robert E Hall and Michael Woodford "for microeconomic foundations of macroeconomic stabilization." They developed new macroeconomic models that have significantly improved "our ability to implement effective stabilization policy."
Academy
What of Committee for the Prize in Economic Sciences said
On the basis of these models, well-timed fiscal and monetary policy measures can reduce the economy's peaks and troughs, the academy said.
"The laureates' work has provided us with...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," John Hassler, committee chair, said.
Twitter Post
They work helped smooth out economy's peaks and troughs
BREAKING NEWS
— The Nobel Prize (@NobelPrize) October 12, 2026
The Royal Swedish Academy of Sciences has decided to award the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Robert E. Hall and Michael Woodford “for microeconomic foundations of macroeconomic stabilisation.”#NobelPrize pic.twitter.com/2i7ktB1Q2b