Ben Bernanke, Douglas Diamond and Philip Dybvig got the nod for having significantly improved understanding of the role of banks in the economy.
Research On Banks, Financial Crises earns US trio Nobel Prize (File Photo)
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.
BREAKING NEWS:
The Royal Swedish Academy of Sciences has decided to award the 2022 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig “for research on banks and financial crises.”#NobelPrize pic.twitter.com/cW0sLFh2sjAdvertisement
— The Nobel Prize (@NobelPrize) October 10, 2022
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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.
This year’s laureates in economic sciences, Ben Bernanke, Douglas Diamond and Philip Dybvig, have significantly improved our understanding of the role of banks in the economy, particularly during financial crises, as well as how to regulate financial markets. #NobelPrize pic.twitter.com/5Z2ra3iHAd
— The Nobel Prize (@NobelPrize) October 10, 2022
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.
The 2022 economic sciences laureates Douglas Diamond and Philip Dybvig developed theoretical models that explain why banks exist, how their role in society makes them vulnerable to rumours about their impending collapse and how society can lessen this vulnerability.#NobelPrize pic.twitter.com/ZNbnfkgjPu
— The Nobel Prize (@NobelPrize) October 10, 2022
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.
Ben Bernanke – awarded the 2022 prize in economic sciences – analysed the Great Depression of the 1930s, the worst economic crisis in modern history. Among other things, he showed how bank runs were a decisive factor in the crisis becoming so deep and prolonged.#NobelPrize pic.twitter.com/GoDWE9dHhx
— The Nobel Prize (@NobelPrize) October 10, 2022
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.
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