STOCKHOLM — The Royal Swedish Academy of Sciences announced Monday that the 2026 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Robert E. Hall and Michael Woodford for "microeconomic foundations of macroeconomic stabilization."

The academy said the laureates have developed macroeconomic models that have significantly improved the ability to implement effective stabilization policies. Based on these models, well-timed fiscal and monetary policy measures can help smooth economic fluctuations.

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"The laureates' work has provided us with a stable theoretical foundation for the models that are now used by central banks and governments around the world. With them, we are better equipped to deal with shocks in the economy, such as energy crises or sudden changes in how much households consume," said John Hassler, chair of the Committee for the Prize in Economic Sciences.

Both laureates were born in the United States. Hall is a professor at Stanford University, while Woodford is affiliated with Columbia University.