🏅 The 2026 Nobel Prize in Economic Sciences has been awarded to Robert E. Hall and Michael Woodford

Robert E. Hall, a professor at Stanford University, and Michael Woodford, a professor at Columbia University, received the prize for developing the microeconomic foundations of macroeconomic stabilisation.

💡 What did they do?

The economists developed models explaining how people’s decisions about spending and saving, together with businesses’ pricing decisions, affect the economy as a whole.

They showed that people and businesses also consider future economic conditions when making decisions. Clear communication about government and central bank plans can therefore influence spending, saving and prices today.

Their research helps governments and central banks design measures to ease economic downturns and sharp fluctuations through interest rates and fiscal policy.

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