Economics Nobel Prize 2022 awarded to Ben S Bernanke, Douglas W Diamond, Philip H Dybvig

NEW DELHI: This year’s Economics Nobel Prize 2022 has been awarded to Ben S Bernanke, Douglas W Diamond, Philip H Dybvig for “research on banks and financial crises.” The Royal Swedish Academy of Sciences announced the winners of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022 today.

This year’s laureates in economic sciences have significantly improved the understanding of the role of banks in the economy, particularly during financial crises, as well as how to regulate financial markets.

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

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/cW0sLFh2sj

— The Nobel Prize (@NobelPrize) October 10, 2022

“The work for which Ben Bernanke, Douglas Diamond and Philip Dybvig are being recognised has been crucial to subsequent research that has enhanced our understanding of banks, bank regulation, banking crises and how financial crises should be managed,” said the official page of Nobel Prize in a tweet.

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Their research reduces the risk of financial crises developing into long-term depressions with severe consequences for society, which is of the greatest benefit to us all, it added.

“Modern banking research clarifies why we have banks, how to make them less vulnerable in crises and how bank collapses exacerbate financial crises. The foundations of this research were laid by Ben Bernanke, Douglas Diamond and Philip Dybvig in the early 1980s. Their analyses have been of great practical importance in regulating financial markets and dealing with financial crises,” the official website stated.