Americans Robert Hall and Michael Woodford win the Nobel economics prize
The Royal Swedish Academy of Sciences announced on Monday that Americans Robert Hall and Michael Woodford won the 2026 Nobel economics prize for the microeconomic foundations of macroeconomic stabilisation (Reuters via Straits Times, Japan Times, Guardian, Al Jazeera, The Hindu). The Guardian said their models help central bankers and finance ministers smooth crises, and Livemint put the prize at 12 million Swedish crowns, about $1.2 million.
Their models underpin how central banks and governments time interest-rate and spending responses to shocks, the toolkit now tested by the oil and war shock.
No direct effect; their models are the basis on which central banks argue their rate decisions.
A prize for stabilisation theory arrives as policymakers face an energy shock and high debt.
DailyDrop Pakistan edition No. 9 · Morning · TUE., OCT. 13, 2026