Nobel Prize 2022: The Nobel Economics Prize was announced on Monday with US trio awarded for their research on explaining the role of banks in the economy during financial crisis.

Ben Bernanke, Douglas Diamond and Philip Dybvig  got the nod for having “significantly improved understanding of the role of banks in the economy, particularly during financial crises, as well as how to regulate financial markets”, the jury announced.

According to the Nobel Prize official handle,  Douglas Diamond and Philip Dybvig developed theoretical models that give a wide idea over why banks exist, how their role in society makes them vulnerable to rumours about their impending collapse and how society can decrease this vulnerability.

Meanwhile, Ben Bernanke analysed the Great Depression of the 1930s, the worst economic crisis in modern history. Among other things, to highlight how bank runs were a decisive factor in the crisis becoming so deep and prolonged.

The work by these laureates, Ben Bernanke, Douglas Diamond and Philip Dybvig was awarded for being crucial to subsequent research that has enhanced general understanding of banks, bank regulation, banking crises and how financial crises should be managed.

Every year in the month of October, the committees in Norway and Sweden recommend names of achievers in the fields of sciences, literature and economics, as well as peace efforts.

A total of six prizes are presented to recognise the groundbreaking contribution of an organisation or an individual in a specific field of human endeavour. The extensive list of fields considered for the prizes include physiology or medicine, physics, chemistry, economic science, literature and peace work.

In the previous years, owing to the Covid-19 pandemic, certain adjustments were made by the Nobel committees. Some events were cancelled in 2020 and 2021 and digital events were organised, while the Oslo ceremony for the peace prize was organized with a limited audience. The laureates will this year receive the Nobel Prizes in Stockholm in December, and winners from the previous two years will also be invited to the formal ceremony.