Nobel Prize in Economics 2026: How Hall, Woodford reshaped modern economic policy

Stockholm – American economists Robert Hall and Michael Woodford were awarded the 2026 Nobel economics prize on Monday. The Royal Swedish Academy of Sciences honored them for their groundbreaking work on the microeconomic foundations of macroeconomic stabilization. This prestigious award, known as the Sveriges Riksbank Prize in Economic Sciences, comes with a prize of 12 million Swedish crowns ($1.2 million).

The laureates' research led to the development of advanced macroeconomic models that enable more effective use of fiscal and monetary policies to mitigate economic fluctuations. The prize committee's chair, John Hassler, stated that their work has provided a robust theoretical framework for models now widely used by central banks and governments worldwide.

These models help authorities respond more effectively to economic shocks, such as energy crises or sudden changes in consumer behavior. The Nobel economics prize, first given out in 1969, is part of the prestigious Nobel Prize family, established by Alfred Nobel's will in 1895. Initially, the prize was one of five awards, but it was later created by Sweden's central bank.

While most laureates have been Americans, only three women have ever been awarded the economics prize, with the most recent recipient being Claudia Goldin in 2023 for her research on gender and economic outcomes in the United States. Previous recipients in economics have included researchers focusing on monetary policy, the economics of information technology, and evolutionary economic theory.

Last year's Nobel prize winners in economics, Joel Mokyr, Philippe Aghion, and Peter Howitt, were honored for their work on "creative destruction" and the impact of new technologies and production methods on economic growth and living standards. The Nobel prizes for medicine, physics, chemistry, literature, and peace were announced earlier in the week.