On October 12, 2026, the Royal Swedish Academy of Sciences in Stockholm announced that the Nobel Memorial Prize in Economic Sciences had been awarded to two American scholars. The announcement came in a news release that highlighted the significance of the laureates’ contributions to the study of economic stabilisation.
The prize was shared by Robert E. Hall, a professor at Stanford University, and Michael Woodford, a professor at Columbia University. Both researchers focused on the microeconomic foundations of macroeconomic stabilisation.
BREAKING NEWS 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 https://t.co/2i7ktB1Q2b
Although commonly called the Nobel Prize in Economics, the award’s official title is the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. It was established in 1968 to commemorate the anniversary of Alfred Nobel’s death in 1896.
He also noted that "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.
For the year 2026, the prize amount is set at 12 million Swedish kronor, which the Academy notes is equivalent to about 1.2 million United States dollars. This prize money is awarded to the recipients.
John Hassler, who serves as chair of the Committee for the Prize in Economic Sciences, presented the laureates’ work to the public. In his remarks, he emphasized how their research has shaped the tools used by policymakers worldwide.
Hassler stated that "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." This quote underscores the practical utility of their theoretical contributions.
US economists developed models that help central bankers and finance ministers to stabilise their #economies https://t.co/6D8PO4fHNJ
He also noted that "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." This remark linked the academics’ findings to real‑world challenges faced by decision‑makers.
The committee recognized their foundational work in understanding how economic boom‑and‑bust cycles function. The economists provided insights into the internal dynamics of economic fluctuations.
Their insights have given central banks and governments frameworks to better manage economic shocks. The models derived from their work allow policymakers to anticipate and respond to fluctuations in energy prices, consumer spending, and other sources of volatility.
Some observers remind that the economics prize is technically not a Nobel Prize.
The economics prize was established in 1968.
The prize’s connection to Alfred Nobel is reinforced by the anniversary of his death in 1896, which serves as the commemorative basis for the award’s name.
Today, there are five Nobel Prizes that are widely recognized: physics, chemistry, physiology or medicine, literature, and peace.