Nobel Economics 2026: Americans Robert Hall and Michael Woodford Win for Work Behind Central Bank Stabilisation Policy

Americans Robert E. Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economic Sciences "for microeconomic foundations of macroeconomic stabilisation," the Royal Swedish Academy of Sciences announced in Stockholm on Monday, October 12, 2026. Reuters reported that the prize is worth 12 million Swedish crowns, about $1.2 million, and that the winners will split it.

Hall is at Stanford University and Woodford at Columbia University, according to NPR affiliate WAMC. Both are US macroeconomists.

The Academy said the work underpins the models that central banks and governments use to stabilise economies during booms and busts. Prize committee chair John Hassler said their research has left policymakers "better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume."

CNBC described the work as foundational to the models used by central banks and governments to manage periods of boom and bust, and CNN said it gives governments and central banks tools for thinking about stabilising their economies amid external shocks.

The economics award is formally called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. It was established by Sweden's central bank in 1968 and first awarded in 1969, so it is not one of the five original prizes created in Alfred Nobel's 1895 will. It is the last prize announced each year.

Last year's economics prize went to Joel Mokyr, Philippe Aghion and Peter Howitt for work on "creative destruction" and how new technology can boost growth. This year's other announced laureates include Navi Pillay for Peace and Anne Carson for Literature, CNBC noted.

The award arrives as central banks around the world, including the Reserve Bank of India, are weighing rate decisions amid energy price shocks and inflation concerns. The Academy's citation focuses on the foundations of exactly that kind of stabilisation policy.

This story is based on reports from Reuters, CNBC, CNN, Japan Times and WAMC as of October 12, 2026.