On Monday, October 12, 2026, the Royal Swedish Academy of Sciences announced that the Sveriges Riksbank Prize in Economic Sciences had been awarded to two American-born economists: Robert E. Hall of Stanford University and Michael Woodford of Columbia University. The announcement came after the earlier Nobel honors in medicine, physics, chemistry, literature, and peace.
The Academy recognized the laureates "for microeconomic foundations of macroeconomic stabilisation." As the Academy noted, their work has helped governments and central banks "smooth out the economy’s peaks and troughs." By building models that trace how households and firms react to shocks—such as energy crises or sudden changes in consumption patterns—Hall and Woodford have provided models that help governments and central banks manage economic shocks.
John Hassler, chair of the Committee for the Prize in Economic Sciences, emphasized that the laureates’ work has provided a "stable theoretical foundation for the models that are now used by central banks and governments around the world." He also said, "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."
Michael Woodford, reflecting on the announcement, described the honor as "a tremendous honour" and admitted that the news came as "a surprise.
The prize itself, formally known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 and is awarded annually on December 10, the anniversary of Alfred Nobel’s death in 1896.
Michael Woodford, reflecting on the announcement, described the honor as "a tremendous honour" and admitted that the news came as "a surprise."
The award ceremony is held annually on December 10, the anniversary of Alfred Nobel’s death.