2 US economists win 2026 Nobel for boom-bust stabilization work
Why it matters: Their models guide central banks and governments on using policy to curb unemployment, inflation and economic shocks.
Robert E. Hall of Stanford University and Michael Woodford of Columbia University won the 2026 Nobel economics prize on Monday for research that shaped how policymakers respond to economic booms and downturns. The Royal Swedish Academy of Sciences cited their work on the microeconomic foundations of macroeconomic stabilization, saying it helped build the models now used by central banks and governments around the world. The pair will share 12 million Swedish kronor, about $1.2 million. The academy said their research improved policymakers' ability to respond to shocks such as energy crises and sharp shifts in household spending with better timed fiscal and monetary measures.