The 2026 Nobel Memorial Prize in Economic Sciences has been awarded to Robert E Hall and Michael Woodford for their work on the microeconomic foundations of macroeconomic stabilisation.
The two economists developed new macroeconomic models that have improved the ability to design effective stabilisation policies. These models can help policymakers time fiscal and monetary measures better to reduce the impact of sharp economic swings.
The award is worth 12 million Swedish kronor (around $1.2 million) and is the final Nobel Prize to be announced this year.
Robert E Hall was born in 1943 in Palo Alto, the United States. He is a professor at Stanford University, while Michael Woodford was born in 1955 in Chicopee, the United States. He is a professor at Columbia University.
The award recognises their work on economic principles that help explain how economies respond to changes and how policymakers can work towards greater stability.
The award is formerly known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. It was established in 1968 and is awarded by the Royal Swedish Academy of Sciences in Stockholm, Sweden.
The prize recognises important contributions to economic research and is awarded to economists whose work has improved the understanding of how economies function.