Nobel Prize in Economics 2026: How models help stabilise global economies

American economists Robert E. Hall and Michael Woodford have been awarded the 2026 Nobel Prize in Economic Sciences for developing macroeconomic models that help governments and central banks stabilise economies and respond to financial shocks. Al Jazeera's Paul Rhys reports from Stockholm, where the announcement highlights how economic research can help policymakers manage boom-and-bust cycles, inflation and periods of weak growth. Randi Hjalmarsson of the Nobel Committee explains how these models have improved the tools available to governments and central banks responding to economic downturns. The announcement comes as the IMF and World Bank hold their annual meetings in Bangkok, where global growth prospects are under discussion amid high energy prices and geopolitical tensions. The report explores how decisions by households, businesses and policymakers shape the world economy, and why confidence and spending remain important to economic stability. Al Jazeera's Paul Rhys reports Subscribe to our channel: http://bit.ly/AJSubscribe Follow us on X : https://twitter.com/AJEnglish Find us on Facebook: https://www.facebook.com/aljazeera Check our website: http://www.aljazeera.com/ Check out our Instagram page: https://www.instagram.com/aljazeeraenglish/ Download AJE Mobile App: https://aje.news/AJEMobile