Hall and Woodford Receive Nobel Economics Prize for Stabilization Research

The Royal Swedish Academy of Sciences awarded the 2026 Nobel Memorial Prize in Economic Sciences to Robert E. Hall and Michael Woodford for research that helped governments and central banks design policies to reduce economic volatility.

According to the awarding committee, Hall, a Stanford University professor, and Woodford, a professor of political economy at Columbia University, received the prize for microeconomic foundations of macroeconomic stabilization.

The winners will receive 12 million Swedish kronor, about $1.2 million, which will be divided equally between them, according to the Nobel awarding committee.

Hall developed models based on studying demand, while Woodford examined the supply side of the economy, including how companies set prices, according to the Royal Swedish Academy of Sciences.

Woodford expressed his reaction during the news conference announcing the award. He was reached by phone and described the recognition as unexpected.

"It’s a tremendous honor," said Michael Woodford, professor of political economy at Columbia University.

Woodford also said the award brought a positive personal reaction after the announcement. His research, together with Hall’s work, was recognized for contributions to understanding economic stabilization.

"It’s a surprise but I feel very good about it," said Michael Woodford, professor of political economy at Columbia University.

The Royal Swedish Academy of Sciences said the economists’ work supports fiscal and monetary policy measures that help limit economic peaks and downturns.

John Hassler, chair of the Committee for the Prize in Economic Sciences, explained the practical importance of their research in relation to economic shocks.

"We are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume," said John Hassler, chair of the Committee for the Prize in Economic Sciences.

The 2025 Nobel Prize in Economics was awarded jointly to Joel Mokyr, Philippe Aghion and Peter Howitt for research on how innovation drives growth and improves living standards, health and quality of life.

Other 2026 Nobel recipients included Navi Pillay for peace, Anne Carson for literature, Henri Kagan and Kenso Soai for chemistry, Francis Halzen for physics, and Karl Deisseroth, Peter Hegemann and Georg Nagel for physiology or medicine.