Robert E. Hall and Michael Woodford win 2026 Nobel Prize in Economics for macroeconomic stabilization research

American economists Robert E. Hall and Michael Woodford were awarded the 2026 Nobel memorial prize in economics on Monday, October 12, recognized by the Royal Swedish Academy of Sciences "for microeconomic foundations of macroeconomic stabilization." The prize, formally the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, carries a value of 12 million Swedish crowns, equivalent to roughly $1.2 million.

The academy credited the two U.S.-born researchers with supplying the theoretical foundation for the economic models now used by central banks and governments worldwide. "On the basis of these models, well-timed fiscal and monetary policy measures can reduce the economy's peaks and troughs," the academy said. John Hassler, chair of the Committee for the Prize in Economic Sciences, noted that "the laureates have helped us smooth out the economy's peaks and troughs."

Woodford, speaking by phone to the committee from New York shortly after the announcement, called it "a tremendous honor" and said the recognition came as a surprise. The prize is the final Nobel award to be given out this year.