The Nobel Memorial Prize in Economics for 2026 has been awarded to Robert Eย Hall and Michael Woodford for their work on the microeconomic foundations of macroeconomic stabilisation.ย The award was announced by the Royal Swedish Academy of Sciences in Stockholm, Sweden. The two economists were honoured for their work on how economic theory can help us understand and manage economic conditions such as inflation, recession, and economic fluctuations.
The Economics Prize is formally known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. The central bank established it in 1968 as a memorial to Nobel, the 19th-century Swedish businessman and chemist who invented dynamite and established the five Nobel Prizes.
Prize money of around $1.2 million
This year, the prize money is 12 million Swedish kronor, or approximately USD 1.2 million. The Economics Prize was not among the original five Nobel Prizes established by Alfred Nobel. It was established later, but is now awarded annually along with the other Nobel Prizes on December 10th, the anniversary of Alfred Nobel’s death.
Last year, three researchers received this award for their research that demonstrated how new products and inventions promote economic growth and improve people’s lives. However, new inventions can also cause business losses for existing companies.
Research useful for central banks and governments
John Hassler, chairman of the award selection committee, said the two economists’ research provided a strong theoretical foundation for economic models now used by central banks and governments worldwide. He said these models can help better prepare for economic challenges such as energy crises or sudden changes in household spending.
Robert E Hall is from Stanford University in California, USA, while Michael Woodford is from Columbia University in New York. Woodford spoke to the committee by phone from New York after the award was announced. He said, “This is a huge honour and a surprise to me.”
“The laureates’ work has provided us with a stable theoretical foundation for the models that are now used by central banks and governments around the world,” John Hassler, chair of the Committee for the Prize in Economic Sciences, said in a news release.
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