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American economists Robert E. Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economics, the Royal Swedish Academy of Sciences announced at a press conference in Sweden. The two were recognized for their work on the microeconomic foundations of macroeconomic stability.

Their research showed how economic models can be rebuilt to revive stabilization policy. Rather than relying on statistical links among macroeconomic variables such as inflation, output and consumption, they grounded their models in microeconomic foundations, examining how the actions of individual households and businesses collectively shape the economy. Hall, born in California in 1943, is a professor of economics at Stanford University, while Woodford, born in Massachusetts in 1955, holds the same title at Columbia University.

The economics prize was first awarded in 1969 after Sweden's central bank decided in 1968 to create a prize in Alfred Nobel's memory. Nobel Prizes are presented annually on December 10, the anniversary of Nobel's death. The 2025 economics prize went to Joel Mokyr, Philippe Aghion and Peter Howitt for their work on the prerequisites for sustainable growth.

Key Takeaways

• Robert E. Hall and Michael Woodford received the 2026 Nobel Prize in Economics
• They were honored for the microeconomic foundations of macroeconomic stability
• Hall teaches at Stanford and Woodford at Columbia University