In Brief
- Robert E. Hall, 83, is a professor at Stanford University, while Michael Woodford, 71, is a professor at Columbia University.
- The pair reconstructed economic modeling by anchoring macroeconomic policy in the individual decision-making processes of households and businesses, laying the theoretical bedrock for the modern "New Keynesian" framework.
- Awarded by the Royal Swedish Academy of Sciences, the laureates will equally share the 12 million Swedish kronor (approximately $1.2 million) prize sum.
The Royal Swedish Academy of Sciences announced on Monday, October 12, 2026, that the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to American academics Robert E. Hall and Michael Woodford. The duo was recognized for developing microeconomic foundations that explain how central banks and finance ministries can effectively manage economic shocks, inflation, and business cycles.
Prior to their pioneering research, macroeconomic policy relied largely on broad statistical trends that often failed to predict or mitigate major economic disruptions. Hall, of Stanford University, and Woodford, of Columbia University, reconstructed these framework models from the ground up by examining how individual consumer expectations and business pricing behaviors interact with broader market policy. Their theoretical work underpins the New Keynesian approach, providing global monetary authorities with essential tools to stabilize output and navigate global crises.
"The work of Hall and Woodford established a stable theoretical foundation for the quantitative models now used routinely by central banks and governments around the world," noted John Hassler, Chair of the Committee for the Prize in Economic Sciences. The Nobel committee added that their research proved crucial during recent economic disruptions, helping prevent long-term damage to growth and inflation.
The 12 million Swedish kronor prize money will be split equally between the two winners during the formal ceremony scheduled for December. The award completes the 2026 Nobel Prize announcements across all categories.
