STOCKHOLM, Sweden | October 12, 2026 | Two American economists, Robert E. Hall of Stanford University and Michael Woodford of Columbia University, have won the 2026 Nobel Memorial Prize in Economic Sciences for research that has advanced understanding of how governments and central banks can manage recessions, inflation and economic fluctuations.
The Royal Swedish Academy of Sciences announced the award on October 12, recognizing the economists for work on the foundations of macroeconomic stabilisation. Their research examines how the decisions and expectations of households and businesses influence the wider economy, helping policymakers assess the effects of interest rates, government spending and other economic measures.
Hall has contributed to research on consumer behaviour, employment and economic cycles, while Woodford is known for his work on monetary policy and the role of expectations in shaping economic activity. Their research has helped strengthen the theoretical basis for policies used by central banks and governments to respond to changing economic conditions.
The work builds on efforts by economists to address the economic turmoil of the 1970s, when oil crises coincided with high inflation, unemployment and sluggish growth. Traditional economic models struggled to explain these developments, prompting researchers to reconsider how individual decisions, market behaviour and government policies interact.
The laureates’ approach connects broad economic trends with the choices made by individual consumers and businesses. It also highlights how expectations about future policies can influence present-day decisions. When central banks communicate their plans, for example, households and businesses may adjust their spending, saving, investment and pricing decisions, affecting inflation and economic growth.
The award is formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. Established in 1968 by Sweden’s central bank and first awarded in 1969, it was not among the five original Nobel Prizes specified in Alfred Nobel’s will, although it is presented alongside them.
The prize carries an award of 12 million Swedish kronor, which the laureates share. Their recognition comes as governments and central banks continue to confront inflation, energy costs and economic uncertainty. Their research provides tools for understanding how policy decisions affect economic behaviour, although the results of any intervention depend on the conditions facing each economy.
Paraluman P. Funtanilla
Paraluman P. Funtanilla is Tutubi News Magazine's Marketing Specialist and is a Contributing Editor. She finished her degree in Communication Arts in De La Salle Lipa. She has worked as a Digital Marketer for start-up businesses and small business spaces for the past two years. She has earned certificates from Coursera on Brand Management: Aligning Business Brand and Behavior and Viral Marketing and How to Craft Contagious Content. She also worked with Asia Express Romania TV Show.
- Paraluman P. Funtanilla
- Paraluman P. Funtanilla
- Paraluman P. Funtanilla
- Paraluman P. Funtanilla
