American economists Robert E. Hall of Stanford University and Michael Woodford of Columbia University have been jointly awarded the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel.
The Royal Swedish Academy of Sciences in Stockholm announced the decision on Monday (October 12, 2026), recognizing the duo "for the microeconomic foundations of macroeconomic stabilization". Their groundbreaking research provided theoretical and empirical frameworks that explain how individual decision-making by households and businesses—such as consumption, savings, and pricing strategies—cumulatively influences national economies during fluctuations.
By bridging microeconomic behavior with macroeconomic outcomes, Hall and Woodford's structural models have transformed how central banks and government treasuries design timely monetary and fiscal interventions to buffer against supply shocks, combat inflation spikes, and mitigate severe recessions. The laureates will share the 11 million Swedish kronor ($1.1 million) award.
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