US economists developed models that help central bankers and finance ministers to stabilise their economies

Two US economists have won the 2026 Nobel economics prize for their work developing models that help central bankers and finance ministers to stabilise their countries, avoiding long recessions and runaway inflation.

Robert Hall of Stanford University, California, and Michael Woodford of Columbia University, New York, were recognised for developing the “microeconomic foundations of macroeconomic stabilisation”, giving policymakers better tools to smooth out the peaks and troughs of their economies.