Ben S. Bernanke, Douglas W. Diamond and Philip G. Dybvig, 2022 Nobel Laureate in Economics.
NOBEL PRIZE – After medicine, physics, chemistry, literature and peace, the 2022 Nobel Prize season ends this Monday, October 10, with the awarding of the Nobel Prize in Economics. It is awarded to three American economists, former Fed (US central bank) Chairman Ben S. Bernanke, Douglas W. Diamond and Philip G. Dybvig, for their “research on banks and financial crises”.
BREAKING NEWS: The Royal Swedish Academy of Sciences has decided to award the 2022 Sveriges Riksbank Prize in Economics… https://t.co/rMJVdyKK0i
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the trio “It has significantly improved our understanding of the role of banks in our economy, particularly during financial crises, as well as how to regulate financial markets”the Nobel jury announced. “An important discovery of your research”whose work began in the 1980s, “has been to show why it is vital to prevent the collapse of banks”stressed the committee of the Swedish Academy of Sciences in charge of awarding the prize.
Ben Bernanke, 68, was chairman of the Federal Reserve (Fed) between 2006 and 2014, a term marked by the 2008 financial crisis and the fall of the US bank Lehman Brothers. The jury, however, made no reference to his performance as head of the Fed in the motivations for his award.
The former central banker analyzed in particular the Great Depression of the 1930s, the worst economic crisis in modern history, the Nobel jury stressed. In particular, he showed how massive withdrawals were a decisive factor in prolonging and worsening crises.
Douglas Diamond, born in October 1953, and Philip Dybvig, 67, have meanwhile developed theoretical models that show why banks exist and why their role in society makes them vulnerable to rumors of impending collapse. This work led in particular to the Diamond-Dybvig model on self-fulfilling bank runs. “If a large number of savers simultaneously go to their banks to withdraw money, the rumor can become a self-fulfilling prophecy”stresses the Nobel jury.
Ten years of graduates in economics
The only one that has not been foreseen in the will of Alfred Nobel, this prize created by the Swedish Central Bank” In Memory ” Inventor’s Award was added in 1969 to the five traditional awards (medicine, physics, chemistry, literature, and peace).
Here is the list of the last ten winners of the Nobel Prize in Economics:
2021: David Card (USA/Canada), Joshua Angrist (USA/Israel) and Guido Imbens (USA/Netherlands), for their work that shed light on many areas such as work, immigration and education.
2020: Paul Milgrom (USA) and Robert Wilson (USA), for having “ improved auction theory and invented new auction formats” a “ benefit sellers, buyers and taxpayers around the world”.
2019: Esther Duflo (France/USA), Abhijit Banerjee (USA), and Michael Kremer (USA) for their work on global poverty reduction.
2018: William Nordhaus (USA) and Paul Romer (USA) for modeling the benefits and harms of economic activity on climate.
2017: Richard H. Thaler (United States), for his work on the psychological and social mechanisms involved in consumer and investor decisions.
2016: Oliver Hart (UK/USA) and Bengt Holmström (Finland), contract theorists.
2015: Angus Deaton (UK/US), “ for his analysis of consumption, poverty and well-being”.
2014: Jean Tirole (France), for his “ market power analysis and regulation ».
2013: Eugene Fama, Lars Peter Hansen and Robert Shiller (United States), for their work on financial markets.
2012: Lloyd Shapley and Alvin Roth (United States), for their work on the best way to match supply and demand in a market, with applications in organ donation and education.
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