From CBS News · · 1m 20s
Two Americans win Nobel economics prize
Robert E. Hall and Michael Woodford honoured for models that help governments manage economic shocks.
In brief
Robert E. Hall and Michael Woodford honoured for models that help governments manage economic shocks. American economists Robert E. Hall and Michael Woodford won the 2026 Nobel prize in economics for developing models that help central banks and governments manage economic shocks. Originally reported by CBS News.
Two Americans win Nobel economics prize
Robert E. Hall and Michael Woodford won the Nobel memorial prize in economics on Monday for work on models helping governments and central banks manage economic shocks.
The Royal Swedish Academy honours their work
The academy said the laureates were honoured for microeconomic foundations of macroeconomic stabilisation. Hall, eighty-three, is affiliated with Stanford University in California. Woodford, born in nineteen fifty-five, is affiliated with Columbia University in New York.
How their models changed economic policy
For decades, governments followed Depression-era prescriptions from John Maynard Keynes.But stagflation in the nineteen seventies, when high inflation and high unemployment occurred together, proved the formula was simplistic.
“This is the Keynesian recipe and it worked well - until it didn't.”
Their work provides stable foundation for policy
John Hassler, chair of the Committee for the Prize in Economic Sciences, said the laureates' work provided a stable theoretical foundation for models now used by central banks and governments worldwide.
Prize money and economics prize history
The prize money this year is twelve million Swedish kronor, about one point two million dollars.
The headline
American economists Robert E. Hall and Michael Woodford won the 2026 Nobel prize in economics for developing models that help central banks and governments manage economic shocks.
