The Royal Swedish Academy of Sciences awarded the 2022 Nobel Prize in Economics on Monday to studies developed to manage the regulation of financial markets and financial crises, thus ending the awards season.
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Three American economists, Ben Bernanke, Douglas Diamond and Philip Dybvig, have been awarded the Nobel Prize in Economics, officially known as the Bank of Sweden Prize for Economic Sciences in Memory of Alfred Nobel.
Bernanke, Diamond and Dybvig were recognized for showing in their work “why preventing bank collapses is vital,” the Royal Swedish Academy of Sciences said in announcing the award in Stockholm.
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
According to the academy, the studies of the three researchers have been recognized for contributing to ‘significantly improving knowledge and understanding of the role of banks in the economy, especially in a context of crisis’.
The laureates, he continues, have helped reduce the risk of financial crises turning into long-term economic recessions or depressions that have serious consequences for society.
In the case of Bern Bernanke, former president of the United States Federal Reserve, the jury highlights a study of his from 1983 in which he demonstrated with “statistical analysis and historical sources” that the so-called “bank runs led several banks to bankruptcy” in the 30s.
This was, according to the analysis of the former president of the FED, “so that the crisis of the 1930s led to a deep recession.”
In the case of Diamond and Dybvig, their work has also been fundamental in carrying out regulations that deal with financial crises and prevent banks from getting into trouble.
With the Economics prize, the season of the awards granted by the Nobel Foundation in various subjects ends. The laureates will receive their respective distinction at an official ceremony in Stockholm on November 10, while the Peace Prize is awarded in Oslo.
Disclaimer: Via Telesur – Translated by RJ983
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