Stockholm, 12 October (H.S.): American economists Robert E. Hall and Michael Woodford have jointly been awarded the 2026 Nobel Prize in Economic Sciences for their pioneering work in developing economic models that help policymakers formulate more effective strategies to tackle challenges such as recessions and inflation.

The Royal Swedish Academy of Sciences announced the award at a press conference on Monday. The Academy said the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2026 would be jointly awarded to renowned American economists Robert E. Hall, 83, and Michael Woodford, 71. They have been recognised for developing macroeconomic models that have significantly improved the ability of policymakers worldwide to implement effective economic stabilisation policies.

The award will be presented at a ceremony on December 10, the anniversary of Alfred Nobel’s death. The total prize money of 12 million Swedish kronor, equivalent to approximately Rs 11.47 crore, will be divided equally between the two laureates. This is the final Nobel award to be announced this year.

The official name of the economics prize is the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. It was established in 1968 by Sweden’s central bank, Sveriges Riksbank, in memory of Alfred Nobel, and was awarded for the first time in 1969. Unlike the original five Nobel Prizes specified in Alfred Nobel’s will of 1895, the economics prize was established separately through an initiative by Sweden’s central bank.

Historically, the majority of recipients of the economics prize have been from the United States. Only three women have received the award so far. In 2023, American economist Claudia Goldin was honoured for her research into the impact of gender differences on wages and employment in the United States.

Ahead of this year’s announcement, the Institute for Scientific Information had assessed potential candidates for the award, identifying researchers working in monetary policy, the economics of information technology and evolutionary economic theory as possible contenders.

Last year, the prize was awarded to Joel Mokyr, Philippe Aghion and Peter Howitt. They were recognised for their work on ‘creative destruction’—the process through which new technologies and production methods drive economic growth and improve living standards.

Notably, the Nobel Prizes in Medicine, Physics, Chemistry, Literature and Peace had been announced the previous week, making the economics prize the final award in this year’s Nobel announcement cycle.

---------------

Hindusthan Samachar / Jun Sarkar