American economist Michael Woodford, who was awarded the Nobel Prize in Economics on Monday, played a key role last year in organizing a group of leading economists to oppose Israeli government policies in Gaza that they warned could lead to widespread famine. Woodford and 22 other prominent American and European economists signed an open letter addressed to Israeli Prime Minister Benjamin Netanyahu, cautioning that the so-called “humanitarian city” strategy proposed by Israel would have devastating humanitarian impacts on Palestinians and negative economic repercussions for Israel itself.
Woodford, recognized alongside Robert E. Hall for their contributions to economic models aiding governments and central banks in managing shocks such as inflation and energy crises, was instrumental in recruiting signatories for the letter. At the time the letter was issued, 12 of the signatories were Nobel laureates in economics. Two months later, Joel Mokyr and Philippe Aghion—also signatories—were awarded the prize, with Woodford joining them upon his recent recognition. This brought the total number of Nobel laureates among the letter's signatories to 15. The letter’s signatories thus included an unusually high concentration of Nobel-recognized economists, prompting some observers to quip about a perceived link between signing the letter and subsequently winning the prize.
The letter criticized Israel’s “humanitarian city” proposal as likely to cause catastrophic humanitarian outcomes for Gaza’s Palestinian population. It also forecast significant economic fallout for Israel, emphasizing the interconnectedness of the region’s stability and economic health. Following the public opposition and international scrutiny, the Israeli government appeared to shift course, eventually entering into a cease-fire agreement with Hamas in October 2025.
Eran Yashiv, an Israeli economist and security researcher familiar with Woodford and Hall, noted that Woodford is not Jewish but maintains a pro-Israel stance. He also highlighted Hall’s connections to Israel, including a friendship with former Bank of Israel Governor Stanley Fischer and prior visits to the country.
The Royal Swedish Academy of Sciences, which awards the Nobel Prize, highlighted Woodford and Hall’s work for establishing a theoretical framework that enhances understanding of consumer behavior, specifically decisions around saving and spending. Their research has informed policy measures worldwide aimed at stabilizing economies in the aftermath of shocks and fluctuations, such as those caused by energy crises and inflation. The recognition underlines the significance of their contributions to economic policy and global financial stability.