The Economics Nobel Quiz: Six Questions on Hall and Woodford

The Royal Swedish Academy of Sciences has named the winners of the 2026 prize in economics: Robert E. Hall of Stanford University and Michael Woodford of Columbia University, according to Reuters. The pair were honored for work that helps central banks and governments steady economies against outside shocks, smoothing what the committee called the economy's "peaks and troughs," CNN reports. The announcement came Monday in Stockholm, closing this year's Nobel season, and this economics Nobel quiz starts with what the committee rewarded.

The story so far

Their research starts from a simple observation about people rather than markets. Instead of tracking big-picture variables like inflation and production, Hall and Woodford studied how individuals and households actually decide to spend, save, and set prices, and found that households and businesses are "forward-looking" when they make those calls. That means governments and central banks can nudge the economy in the right direction by clearly communicating their plans for taxes, spending, and interest rates, the academy said in a statement, as reported by CNN. It is a shift from treating the economy as a machine to treating it as the sum of millions of individual choices.

Committee chair John Hassler said the laureates gave economists a stable theoretical foundation for the models now used by central banks and governments around the world, leaving policymakers better equipped to handle shocks like energy crises or sudden changes in household spending. The economics award was the last of this year's Nobels to be announced, following the medicine, physics, chemistry, literature, and peace prizes last week, Reuters notes. Before the quiz, here is a quick refresher on what the committee actually rewarded.

The quiz

Ready? This economics Nobel quiz covers the winners, the money, and the ideas behind the award, with the answer tucked right after each question.

1. Who took home this year's economics Nobel? A) Joel Mokyr, Philippe Aghion and Peter Howitt B) Robert E. Hall and Michael Woodford C) Claudia Goldin and Ben Bernanke. The answer is B. The academy named Hall of Stanford and Woodford of Columbia as this year's laureates, Reuters reports.

2. What did the official citation honor? A) "creative destruction and long-run growth" B) "the economics of information technology" C) "microeconomic foundations of macroeconomic stabilisation." The answer is C. That was the exact wording from the Royal Swedish Academy of Sciences; option A describes last year's winners, Mokyr, Aghion and Howitt, per Reuters.

3. How much is the prize worth? A) Under a million Swedish crowns in total B) 12 million Swedish crowns, about $1.2 million C) 50 million Swedish crowns. The answer is B. The award is worth 12 million Swedish crowns, roughly $1.2 million, shared between the two laureates, according to Reuters.

4. Which institution announced the prize? A) The Nobel Foundation in Oslo B) Sveriges Riksbank in Gothenburg C) The Royal Swedish Academy of Sciences in Stockholm. The answer is C. The academy made the announcement in Stockholm on Monday, Reuters reports.

5. What sits at the heart of the laureates' models? A) Markets always fix themselves, so governments should stay out of the way B) Households and businesses are "forward-looking," so clearly communicated policy plans can steer the economy C) Inflation comes only from printing money. The answer is B. Because people and firms look ahead when they decide to spend or set prices, central banks and governments can move the economy by signaling their future plans, the academy said in a statement carried by CNN.

6. How many women have won the economics Nobel? A) None B) Eleven C) Three. The answer is C. Only three women have ever received it, most recently Claudia Goldin in 2023 for her research on how gender has shaped pay and employment in the United States, Reuters notes.

How did you score?

Six out of six on this economics Nobel quiz marks you as a true prize-season watcher who read the announcement carefully. Four or five means you followed the headlines closely and only tripped on a detail. Three or fewer suggests the laureates are right about one thing: looking ahead pays off, so put the next announcement on your calendar and try again. Share your score with a friend and see who knows their Nobels. The academy's full announcement walks through the laureates' papers and the models that grew out of them, if six questions left you wanting more. Keep the streak going with the Nobel Peace Prize quiz and the optogenetics quiz from earlier in the prize season, or read the backstory in Nobel Economics Prize: The Award That Was Not in the Will.