Nobel Prize for economics awarded to Hall and Woodford for work on ‘smoothing’ crises
News Source
•Mon, 12 Oct 2026 14:20:53 GMT
📰 What Happened
Two American economists have won the 2026 Nobel Prize in economics. Robert Hall of Stanford and Michael Woodford of Columbia were honoured for models that help central banks and finance ministers steady their economies. The prize, worth about $1.2 million, was announced in Stockholm. The academy said their work created 'a paradigm shift in stabilisation policy'. Their New Keynesian models are now used by central banks and finance ministries around the world.
🔍 The Backstory
The economics prize is the youngest Nobel category, added in 1968 by Sweden's central bank. It is officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. New Keynesian models updated older ideas with a clearer picture of how people and firms make decisions. They help officials decide when to cut interest rates or spend more during downturns. Only three women have ever won the prize, a fact noted in coverage of the announcement.
🎯 Why It Matters
These ideas help governments decide how to fight recessions and inflation, which affects jobs, prices and savings.
Two American economists have won the 2026 Nobel Prize in economics. Robert Hall of Stanford and Michael Woodford of Columbia were honoured for models that help central banks and finance ministers steady their economies. The prize, worth about $1.2 million, was announced in Stockholm. The academy said their work created 'a paradigm shift in stabilisation policy'. Their New Keynesian models are now used by central banks and finance ministries around the world.
The economics prize is the youngest Nobel category, added in 1968 by Sweden's central bank. It is officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. New Keynesian models updated older ideas with a clearer picture of how people and firms make decisions. They help officials decide when to cut interest rates or spend more during downturns. Only three women have ever won the prize, a fact noted in coverage of the announcement.
These ideas help governments decide how to fight recessions and inflation, which affects jobs, prices and savings.