Americans Hall, Woodford win Nobel prize for work on stabilising economies
Summary
US academics Robert Hall and Michael Woodford have won the 2026 Nobel economics prize for decades of work on models used by central banks and finance ministries to stabilise economies. Their research has influenced tools such as forward guidance, sticky inflation and the output gap, shaping modern monetary policy responses to shocks and financial crises.
Key Points
- Robert Hall and Michael Woodford won the 2026 Nobel economics prize for work on stabilising economies.
- Their models focus on micro-level decisions by households and businesses rather than top-down economic theory.
- Woodford said forward guidance became an important policy tool after the 2009 financial crisis.
- The prize, officially the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is worth 12 million Swedish crowns.
