The Royal Swedish Academy of Sciences announced that the 2026 Nobel Prize in Economic Sciences would be awarded to Professor Hall and Professor Woodford for their contributions to macroeconomic stabilisation. The stated reason for the award was that they laid the foundations for monetary and fiscal policy.
The Royal Swedish Academy of Sciences announced on the 12th that the 2026 Nobel Prize in Economic Sciences would be awarded. The recipients are Professor Robert Hall of Stanford University in the US and Professor Michael Woodford of Columbia University in the US. The formal reason for the award is said to be their contribution to macroeconomic stabilisation. This means that ideas forming the basis of modern monetary and fiscal policy have been recognised.
The two professors are said to have established the theoretical and practical foundations supporting macroeconomic stabilisation, including the mechanism whereby central banks lower interest rates during recessions and raise them during periods of inflation. These mechanisms themselves occupy an important place in the history of postwar economic policy and are viewed as having influenced the conduct of monetary policy today. The award will lead to renewed international recognition of these research achievements.