Hall and Woodford Win 2026 Nobel Economics Prize

American economists Robert E. Hall of Stanford University and Michael Woodford of Columbia University received the 2026 Nobel Prize in Economic Sciences in Stockholm on Monday, October 12, for research that helps governments and central banks design policies to reduce economic volatility and respond to disruptions such as energy crises and changes in household spending. The Royal Swedish Academy of Sciences recognized the professors for their contributions to the microeconomic foundations of macroeconomic stabilization.

According to the awarding committee, their work provides a framework for understanding how economic fluctuations develop and how fiscal and monetary policies can help limit their effects. The two laureates will share a prize of 12 million Swedish kronor, equivalent to approximately $1.2 million, according to The New York Times.

The academy described the contribution of their research in a statement: "The laureates have helped us smooth out the economy’s peaks and troughs," the institution said.

Hall's research examined demand, while Woodford focused on the supply side, including how companies set prices. Their complementary approaches helped advance economic models used to assess how policy decisions affect overall economic performance. John Hassler, chair of the Committee for the Prize in Economic Sciences, explained how the research can help policymakers respond to unexpected disruptions. The framework is relevant to shocks that affect production, consumption and prices.

"we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume," Hassler said. Woodford expressed surprise and happiness after learning he had received the award during a telephone call at the announcement news conference. The Columbia University professor described the recognition as a major honor.

"It’s a tremendous honor," Woodford said. "It’s a surprise but I feel very good about it." The award's formal name is the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.

It was established by Sweden's central bank in 1968 and is not one of the original prizes established under Alfred Nobel's will. The research recognized this year addresses questions central to economic policymaking: how governments and central banks can reduce fluctuations while responding to changing economic conditions. Its relevance includes disruptions that can affect energy prices, household demand and broader economic stability.

In 2025, the economics prize went to Joel Mokyr, Philippe Aghion and Peter Howitt for research on how innovation drives economic growth. Their work examined the relationship between technological progress and sustained improvements in living standards, health and quality of life.