Ben Bernanke Wins 2022 Nobel Prize in Economics for Banking Research

The 2022 Nobel Prize in Economics was given to Americans Ben Bernanke, Douglas Diamond and Philip Dybvig, for their research on the banking sector and financial crises.

Bernanke, 68, was chairman of the Fed, the US central bank, from 2006 to 2014, and faced the 2008 crisis.

Diamond is a researcher on financial crises and liquidity, and a professor at the University of Chicago since 1979. And Philip Dybvig, 67, is a professor of banking and finance at Washington University in St. Louis.

“We didn’t know it at the time, but 15 years ago, much of the world was on the brink of a devastating economic crisis. Most of us were unprepared for it. However, some economists were prepared and worried,” said Hans Ligurian, secretary of the -general of the Royal Swedish Academy of Sciences, which organizes the award, by announcing the winners.

“They had studied the theory of bank runs, believed its evidence, and suspected that the possibility of bank runs was becoming irrelevant. As events unfolded in 2008, nine out of ten pieces of evidence were in favor of the theory,” he continued. Ligurian,

In short, the theory of bank runs suggests that banks are only safe if they are properly regulated.

The announcement was made on Monday (10). The Nobel Prize in Economics has already awarded 89 people since its creation in 1969. The prize was awarded for the first time in 1901. Initially, there were five categories: peace, literature, chemistry, physics and medicine.