How Do Household and Business Decisions Affect Macroeconomic Stability?

The new recipients of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel have been announced. This year’s prestigious award went to American economists Robert Ernest Hall and Michael Woodford for their in-depth study of the “microeconomic foundations of macroeconomic stabilization.”

In their research, the economists showed that assessing a country’s overall economic condition requires more than simply looking at major macroeconomic indicators such as inflation, total production, and consumption levels.

As noted, last year’s prize was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their research into the relationship between economic growth and technological progress.

With the announcement of the economics prize, the traditional Nobel Week reaches its final stage. The award ceremony will, in keeping with tradition, be held on December 10 — the anniversary of Alfred Nobel’s death.

In 2026, the prize amount was 12 million Swedish kronor, approximately $1.2 million.