U.S. economists Robert E. Hall of Stanford University and Michael Woodford of Columbia University have been awarded the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their work on the microeconomic foundations of macroeconomic stabilization.

Their research has advanced understanding of how household and business decisions shape broader economic trends, providing a stronger foundation for policies aimed at reducing economic fluctuations. The models developed by the two economists have helped governments and central banks assess how monetary and fiscal measures can mitigate downturns and respond to shocks, including energy crises and changes in consumer spending.

Their work has also strengthened the theoretical basis for modern macroeconomic analysis, highlighting the role of expectations in economic decision-making and the importance of well-timed policy interventions in maintaining economic stability.