On October 12, 2026, the Royal Swedish Academy of Sciences announced that the Nobel Prize in Economic Sciences would be shared by Robert E. Hall of Stanford University and Michael Woodford of Columbia University. The announcement was made on that date, and the prize will be presented in Stockholm on December 10. The date, the twelfth day of the month, became the marker for a recognition that the Academy said rested on work that had reshaped how governments and central banks think about smoothing economic fluctuations.
Robert E. Hall was born in 1943 and, at the time of the award, was 83 years old. Michael Woodford was born in 1955 and was 71 years old. Both are American economists whose careers have been rooted in research universities—Hall at Stanford, Woodford at Columbia. Their work has long focused on how the decisions of individual households and firms add up to economy‑wide outcomes, a perspective the Academy highlighted as essential for building models that can guide policy.
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
The Academy said the laureates had developed new macroeconomic models that provide a solid theoretical basis for effective stabilization policies. By grounding these models in microeconomic foundations—analyzing the behavior of individual households and firms—they enabled central banks and governments to better manage economic fluctuations. This approach, the Academy noted, had proven critical in addressing various economic crises, including energy shocks and sudden shifts in consumer behavior. The models also allow policymakers to influence future expectations through clear communication of fiscal and monetary plans, a point the committee emphasized.
C’est une surprise, mais ça me fait vraiment plaisir," which translates to "It is an immense honor.
In its statement, the Nobel Committee declared, in English translation, that the laureates "have developed new macroeconomic models that have improved our ability to implement effective stabilization policies." The Royal Swedish Academy of Sciences expanded on this, observing that economic development is characterised by alternating downturns and upturns, and that stimulating or slowing the economy at the right time can provide stability and help avoid drawn‑out recessions or runaway inflation. It added that Hall’s and Woodford’s research had generated a paradigm shift in stabilisation policy.
The Royal Swedish Academy of Sciences on Monday decided to award the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Robert E. Hall and Michael Woodford. https://t.co/7CbdVU33gv https://t.co/GwTHwE6tL8
The Academy further explained that New Keynesian models, a result of the laureates’ research, allow officials to explain and quantify how stabilisation policy affects business cycles and are now used by central banks and finance ministries around the world. This aligns with the claim that timely fiscal and monetary policy measures can reduce the peaks and valleys of the economy, and that Neo‑Keynesian models are employed by central banks and finance ministries globally. The Academy also noted that the laureates’ work has provided a solid theoretical foundation for the models used today by central banks and governments, a sentiment echoed by John Hassler, who said the achievements had prepared the world better to deal with shocks such as energy crises or sudden changes in household consumption.
Both economists expressed surprise and honor at the recognition. Michael Woodford said, in French, "C’est un immense honneur. C’est une surprise, mais ça me fait vraiment plaisir," which translates to "It is an immense honor. It is a surprise, but it really makes me happy." He also remarked in German, "Es ist eine große Überraschung, aber es fühlt sich sehr gut an," meaning "It is a great surprise, but it feels very good." In English he later noted, "This was surprising, but I feel very good." Woodford emphasized that his theories were never developed with a specific political agenda, a point also captured in the claim that he stressed the absence of partisan motives. Robert Hall, while quoted less directly, was described as feeling honored and surprised, and his stance was noted as neutral by the Academy’s framing.
American economists Robert E. Hall and Michael Woodford won the Nobel Memorial Prize Monday for their work on models that have helped governments and central banks manage economic shocks, such as energy crises and inflation. https://t.co/wTJMmRXOBt
The Nobel Prize in Economics, first awarded in 1969, carries a monetary award of 12 million Swedish krona, and will be presented in Stockholm on December 10. The prize was established by the Swedish Central Bank and carries a monetary award of 12 million Swedish krona. Robert Hall’s research traces back to 1978, and Woodford presented his influential model in 2003, both years cited as milestones in their scholarly trajectories.
With the award, the Academy hopes that the laureates’ frameworks will continue to inform policy responses to future economic disturbances. The models they built, rooted in micro behavior, give officials a way to anticipate how changes in taxes, spending, or interest rates might ripple through the economy and to communicate those intentions clearly. As the global economy faces recurring shocks—from energy price swings to abrupt shifts in consumer sentiment—the tools Hall and Woodford refined offer a way to temper the extremes, aiming to keep growth steadier and inflation in check.