Hall and Woodford win 2026 economics Nobel

US economists Robert E. Hall of Stanford University and Michael Woodford of Columbia University have been awarded the 2026 Nobel Memorial Prize in Economic Sciences for strengthening the theoretical foundations of macroeconomic stability, research that has helped governments and central banks devise policies to combat recessions, unemployment and inflation.

The Royal Swedish Academy of Sciences announced the laureates at a press conference in Stockholm on Monday, October 12, concluding this year’s Nobel announcements. Established by Sweden’s central bank in memory of Alfred Nobel, the economics prize carries a monetary award of 12 million Swedish kronor, roughly $1.2 million. Professors Hall and Woodford developed influential models that integrate structural macroeconomic analysis with the decisions of individuals, households and businesses. According to the Nobel Committee, economic growth does not follow a uniform trajectory, since periods of rapid expansion frequently alternate with severe downturns. Their theoretical contributions, moreover, helped lay the groundwork for modern New Keynesian economics, which central banks and finance ministries worldwide use to analyse economic fluctuations and to formulate stabilising policies.

Their research gained particular salience amid doubts about the efficacy of conventional Keynesian theory following the oil crises of the 1970s and the ensuing global stagnation. A cardinal feature of their work is the role of expectations in economic decision-making: consumers and firms weigh not only prevailing conditions but also anticipated future developments. Consequently, clear and timely communication of government policies and central bank intentions can shape consumption, investment and price-setting decisions, thereby enabling policymakers to respond more effectively to shocks, including energy crises and abrupt shifts in consumer spending.

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Economics was not among the prizes envisaged in Alfred Nobel’s will of 1895; Sweden’s central bank instituted the award in 1969 to mark its 300th anniversary, and it is formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. The prizes are traditionally presented in Stockholm on December 10, the anniversary of Nobel’s death. Most recipients have been American, whereas only three women had won by the end of 2025. Claudia Goldin received the award in 2023 for her research on women’s labour-market outcomes, while Joel Mokyr, Philippe Aghion and Peter Howitt shared the 2025 prize for their work on long-term growth and innovation.