{"id":8197,"date":"2026-10-12T12:58:17","date_gmt":"2026-10-12T12:58:17","guid":{"rendered":"https:\/\/sotnews.agency\/?p=8197"},"modified":"2026-10-12T12:58:17","modified_gmt":"2026-10-12T12:58:17","slug":"nobel-economics-prize-awarded-to-robert-hall-and-michael-%e2%81%a0woodford-business-and-economy-news","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=8197","title":{"rendered":"Nobel economics prize awarded to Robert Hall and Michael \u2060Woodford | Business and Economy News"},"content":{"rendered":"
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The Swedish academy says the academics\u2019 models are \u2018now used by central banks and \u200bgovernments around the world\u2019.<\/em><\/p>\n<\/div>\n

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Published On 12 Oct 2026<\/span>12 Oct 2026<\/span><\/p>\n<\/div>\n<\/div>\n

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The \u20602026 Nobel Prize in Economic Sciences has been awarded to US academics Robert Hall and Michael \u2060Woodford for their work on how monetary and fiscal policy can help stabilise fluctuations in the economy, according to the Royal Swedish Academy of Sciences.<\/p>\n

The winners of the prestigious award, formally known \u2060as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel and the final prize to be given out this year, were announced on Monday.<\/p>\n

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The two laureates developed new macroeconomic models that improve people\u2019s ability to implement effective stabilisation policies, enabling fiscal and monetary policy measures that can reduce damaging swings in the economy.<\/p>\n

\u201cThe laureates\u2019 work has provided us \u200cwith a stable theoretical foundation for the models that are now used by central banks and governments around the world,\u201d John Hassler, chair of the Committee for the Prize in Economic Sciences, said in a statement.<\/p>\n

\u201cWith them, we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume.\u201d<\/p>\n

During the oil crises in the 1970s, the existing Keynesian models used to determine when and how measures should be implemented to tackle recessions or other economic fluctuations stopped working. Hall and Woodford then developed new tools to understand what policy responses could be the most effective.<\/p>\n

\u201cRather than basing the models on statistical links between macroeconomic variables, such as inflation, production and consumption, they chose to build them on a microeconomic foundation,\u201d the academy said. \u201cThis encompasses an understanding of how the total mass of individual households and businesses affect the economy through their actions.\u201d<\/p>\n

The economics prize, first awarded \u2060in 1969, is not part of the five original awards \u2060created in the 1895 will of industrialist and dynamite inventor Alfred Nobel, but was instead established by Sweden\u2019s central bank.<\/p>\n

The majority of previous laureates have been from the United States. Only three women have \u2060ever won, most recently Claudia Goldin in 2023 for her work on how gender has affected pay and employment over time \u2060in the US.<\/p>\n

Last year\u2019s winners \u2013 Joel Mokyr, Philippe Aghion and Peter Howitt \u2013 won for \u200ctheir work on \u201ccreative destruction\u201d and how new technology and production methods can boost growth and living standards.<\/p>\n

Like the other Nobel awards, the economics prize consists of a diploma, a gold medal, and a $1.2m cheque.<\/p>\n

The Nobel prizes for medicine<\/a>, physics, chemistry, literature and peace<\/a> were announced last \u200cweek, with South African jurist Navi Pillay<\/a> and Canadian writer Anne Carson<\/a> among the winners.<\/p>\n<\/div>\n\n

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The Swedish academy says the academics\u2019 models are \u2018now used by central banks and \u200bgovernments around the world\u2019. Published On 12 Oct 202612 Oct 2026 The \u20602026 Nobel Prize in Economic Sciences has been awarded to US academics Robert Hall and Michael \u2060Woodford for their work on how monetary and fiscal policy can help stabilise…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"categories":[11],"tags":[],"class_list":["post-8197","post","type-post","status-publish","format-standard","category-international-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t