Former Fed chief Bernanke, Diamond &Dybvig win Nobel Prize for Economics
- IBJ Bureau
- Oct 11, 2022
Ben S Bernanke, Douglas W Diamond and Philip H Dybvig won the 2022 Nobel Prize in Economics for research on banks and financial crises.
The committee said that the three laureates had significantly improved the understanding of the role of banks in the economy, particularly during financial crises, and an important finding in their research was why avoiding bank collapses was vital.
“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 Nobel announcement read.
The Sveriges Riksbank Prize in Economic Sciences is awarded in memory of Alfred Nobel. While Alfred Nobel did not mention the economics prize in his will, the Sveriges Riksbank established the award in 1968, and the Royal Swedish Academy of Sciences was given the task of selecting the Laureates in Economic Sciences, starting in 1969.