Updated on: October 12, 2026 / 6:47 AM EDT / CBS/AP
American economists Robert E. Hall and Michael Woodford have received the Nobel Memorial Prize in Economic Sciences for their significant contributions to economic stabilization models. The Royal Swedish Academy of Sciences announced the winners in Stockholm, acknowledging their work on microeconomic foundations of macroeconomic stabilization.
The academy emphasized that Hall and Woodford’s research has been pivotal in managing economic fluctuations. Hall is affiliated with Stanford University while Woodford is connected to Columbia University. Woodford expressed his gratitude and surprise at the recognition.
“The laureates’ work has provided us with a stable theoretical foundation for the models now used by central banks and governments globally,” stated John Hassler, chair of the award committee.
Historically, economic shocks were managed using John Maynard Keynes’s Depression-era strategies. These involved fiscal interventions aimed at boosting consumption and investment. However, the approach faced limitations during the stagflation of the 1970s, characterized by simultaneous high inflation and unemployment.
Hall and Woodford addressed these economic challenges by developing models that better reflect consumer and business decision-making processes related to investments. Their separate contributions laid a new foundation for stabilization policy.
The Bank of Sweden Prize in Economic Sciences, established in 1968, honors Alfred Nobel’s legacy, even though it is not an official Nobel Prize. Traditionally presented alongside other Nobel Prizes on December 10, the prize holds significant prestige, with its prize money amounting to 12 million Swedish kronor (approximately $1.2 million).
Nobel Prizes in medicine, physics, chemistry, literature, and peace were announced earlier. This year’s economic laureates add to the predominantly American list of previous winners, which includes only three women, notably Claudia Goldin in 2023.