Robert Hall and Michael Woodford Win Nobel Prize in Economics

American economists Robert E. Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economic Sciences for their research on the microeconomic foundations of macroeconomic stabilisation. Their work has helped governments and central banks develop better strategies to manage economic shocks, including inflation, energy crises and recessions. The Royal Swedish Academy of Sciences announced the award in Stockholm on Monday. Their research established a theoretical foundation for economic models now used by policymakers worldwide to assess how fiscal and monetary policies can reduce economic fluctuations.

Robert E. Hall is associated with Stanford University in California, while Michael Woodford is a professor at Columbia University in New York. Hall studied how consumers' expectations about future income influence their spending decisions. Woodford examined how expectations about future interest rates affect business pricing decisions and monetary policy. Their work helped advance New Keynesian economic models by connecting the decisions of households and businesses with broader economic outcomes. These models have improved policymakers' understanding of how to respond to inflation, financial disruptions and economic downturns.