Americans Robert Hall and Michael Woodford Win 2026 Nobel Economics Prize for Work on Economic Stabilisation

American economists Robert 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 announced on Monday.

The prestigious award, formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is the final Nobel prize to be announced this year. The award carries prize money of 12 million Swedish kronor, equivalent to approximately1.2 million.

The two laureates developed new macroeconomic models that have improved the ability of governments and central banks to implement effective economic stabilisation policies. Their research supports the timely use of fiscal and monetary measures to reduce the severity of damaging fluctuations in the economy.

“The laureates’ work has provided us with a stable theoretical foundation for the models that are now used by central banks and governments around the world,” John Hassler, chair of the Committee for the Prize in Economic Sciences, said in a statement.

He added that their research has strengthened the ability to respond to economic shocks, including energy crises and sudden changes in household consumption.

First awarded in 1969, the economics prize was not among the original five Nobel prizes established under Alfred Nobel’s 1895 will. It was subsequently introduced by Sweden’s central bank.

The United States has produced the majority of previous laureates in economics. Only three women have received the award so far. The most recent was Claudia Goldin, who won in 2023 for her research into how gender has influenced wages and employment patterns over time in the United States.

Meanwhile, an analysis by the Institute for Scientific Information, part of Clarivate, had identified researchers working on monetary policy, the economics of information technology and evolutionary economic theory as potential contenders for this year’s award.

Last year’s economics prize was awarded to Joel Mokyr, Philippe Aghion and Peter Howitt for their work on “creative destruction” and how technological advances and new production methods can drive economic growth and improve living standards.

The Nobel prizes in medicine, physics, chemistry, literature and peace were announced last week.