Business · Economy · 13 hrs ago
Robert E. Hall and Michael Woodford win economics prize
US economists Robert E. Hall and Michael Woodford have won this year’s economics prize in memory of Alfred Nobel.
The Royal Swedish Academy of Sciences honored them for developing models that help policymakers understand how the economy responds to policy decisions.
The models draw on the choices made by households and businesses, rather than viewing the economy only as a whole.
Governments can use taxes and spending, while central banks can adjust interest rates, to limit sharp rises and falls in economic activity.
The aim is to reduce the risk of long recessions, high unemployment and uncontrolled inflation.
The models are now used by governments and central banks around the world.
Hall teaches at Stanford University in California, and Woodford teaches at Columbia University in New York.
The award, worth 12 million Swedish kronor, will be presented in Stockholm on December 10.
Robert E. Hall and Michael Woodford have won the 2026 economics prize.
The Royal Swedish Academy of Sciences honored them for developing macroeconomic models that support more effective economic stabilization.
Their models help governments and central banks understand how policy can reduce economic swings.
The models use a microeconomic foundation, examining how decisions by households and businesses shape the wider economy.
The prize is worth 12 million Swedish kronor and will be presented in Stockholm on December 10.
- Who
- Robert E. Hall and Michael Woodford, US economists.
- What
- They won the economics prize for developing macroeconomic models that enable more effective economic stabilization.
- When
- The award was announced on October 12, 2026.
- Where
- The Royal Swedish Academy of Sciences announced the award in Stockholm.
- Why
- Their models provide a foundation for policies that can reduce economic fluctuations.
This story does not have two clearly opposing sides.
- Winners
- Robert E. Hall and Michael Woodford
- Announcement date
- October 12, 2026
- Award amount
- 12 million Swedish kronor
- Hall’s university
- Stanford University in California
- Woodford’s university
- Columbia University in New York
- Presentation date and location
- December 10 in Stockholm
What people are saying
With them we are better equipped to deal with economic shocks such as energy crises or sudden changes in household consumption.
It is a big surprise, but it feels very good.
The work of the laureates has provided us with a stable theoretical foundation for the models used today by central banks and governments around the world.
Sources
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