Nobel in Economics awarded to US models for stabilizing shocks

The American researchers Robert Hall and Michael Woodford received the Nobel Prize in Economics for 2026 in recognition of their research on the microfoundations of macroeconomic stability. Their work focused on linking individual and household behavior to overall economic performance, which helped improve understanding of how consumption changes and the economy’s responses to government and monetary policies impact stability. The Nobel Committee stated that their models have enhanced the ability to manage economic shocks, such as energy crises and fluctuations in household consumption, and have become a theoretical basis used by governments and central banks worldwide. The prize is worth 12 million Swedish crowns (approximately 1.2 million dollars) and marks the end of the 2026 Nobel season.

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