2026 Nobel Prize in Economics Recognises Research on Economic Stability

The Royal Swedish Academy of Sciences has awarded the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to economists Robert E. Hall and Michael Woodford. They were recognised for their work on the microeconomic foundations of macroeconomic stabilisation. Their research has contributed to the development of economic models that explain how individual decisions made by households and businesses influence the broader economy.

Macroeconomic stabilisation involves measures used by governments and central banks to manage economic fluctuations, including inflation, unemployment and changes in economic growth. By grounding macroeconomic models in the decisions and behaviour of individuals and businesses, the laureates’ work has helped strengthen the theoretical basis for economic policy. These insights are relevant when policymakers respond to recessions, inflationary pressures and other economic shocks. The award recognises the importance of economic research in improving the understanding and implementation of stabilisation policies.