The 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was awarded to American researchers Robert E. Hall and Michael Woodford for their work on "macroeconomic stabilization." The Nobel Committee announced this on October 12, UNN reports.
The Royal Swedish Academy of Sciences decided to award the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Robert E. Hall and Michael Woodford "for the microeconomic foundations of macroeconomic stabilization"
This year's laureates in economic sciences, Robert E. Hall and Michael Woodford, "developed new macroeconomic models that significantly improved our ability to implement effective stabilization policies," according to the statement. "Based on these models, timely fiscal and monetary policy measures can reduce economic booms and busts," the committee's statement says.
The research by the 2026 laureates in economic sciences, Robert E. Hall and Michael Woodford, reportedly "has made us better prepared to manage economic downturns."
"They laid the foundation for the New Keynesian paradigm, in which models are built on microfoundations, that is, from the bottom up. Economic outcomes are the result of millions of decisions made at the micro level by households and firms. By using models based on this approach, rather than simply studying the economy from a macro perspective, as if from a bird's-eye view, Hall and Woodford's research led to a paradigm shift in the theory of stabilization policy," the statement says.
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