UPDATED: American economists Hall, Woodford win 2026 Nobel prize

American economists Robert E. Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economic Sciences for their work on the microeconomic foundations of macroeconomic stabilisation. The Royal Swedish Academy of Sciences recognised their development of new macroeconomic models that significantly improve governments' and central banks' ability to implement effective policies to stabilise the economy.

The models help policymakers reduce economic fluctuations through well-timed fiscal and monetary measures, smoothing out the economy's peaks and troughs. Hall and Woodford's work has provided a stable theoretical foundation for models used by central banks and governments worldwide, helping them deal with shocks such as energy crises or sudden changes in household consumption.

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