Three American gets Nobel Prize for Economics for their research in preventing bank collapse
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The Royal Swedish Academy of Science has awarded three American economists Ben Bernanke, Douglas Diamond and Philip Dybvig, the Nobel Prize in economics 2022 for their pioneering work on “improving our understanding of the role of banks in the economy, particularly during financial crises and why avoiding bank collapses is vital.” The Sveriges Riksbank Prize in Economic Sciences for 2022 was announced 10th October 2022.
Ben Bernanke
According to the Nobel committee ““Through statistical analysis and historical source research, Bernanke demonstrated how failing banks played a decisive role in the global depression of the 1930s, the worst economic crisis in modern history. The collapse of the banking system explains why the downturn was not only deep, but also long-lasting. It added the importance of well-functioning bank regulation is also understood thanks to this research.
Ben Bernanke was the chairman of the United States Central Bank, Federal Reserve in 2008 when the failure of Lehman Brothers sparked a worldwide financial crisis.
Douglas W Diamond and Philip H Dybvig
Both Diamond and Dybvig worked together to develop theoretical models explaining why banks exist, how their role in society makes them vulnerable to rumours about their impending collapse, and how society can lessen this vulnerability. These insights “form the foundation of modern bank regulation,” said the Academy.
Nobel Prize in Economics
The economics prize is not one of the original five awards created in the 1895 will of industrialist and dynamite inventor Alfred Nobel.
It was established by Sweden's Central Bank, Sveriges Riksbank in 1968 and the first prize was given in 1969 to Ragnar Frisch of Norway and Jan Tinbergen of Netherlands.
The prize money of 10 million Swedish crown ($885,000) prize money will be distributed between them three.
The prize will be conferred in a ceremony in Stockholm, Sweden on 10 December which is the death anniversary of Alfred Nobel.
Nobel Prize Winner 2022
Field | Winner 2021 | Winner 2022 |
Medicine or Physiology | David Julius (American) and Ardem Patapoutian(American) | Svante Paabo of Sweden |
Chemistry | Benjamin List (Germany)and David W.C. MacMillan(United Kingdom) | Carolyn Bertozzi, Morten Meldal and Barry Sharpless |
Physics | Syukuro Manabe(Japan), Klaus Hasselmann (Germany)and Giorgio Parisi(Italy) | Alain Aspect(France), John Clauser(American) and Anton Zeilinger(Austria) |
Literature | Abdulrazak Gurnah(United Kingdom) | Annie Ernaux of France |
Peace | Maria Ressa(Philippines ) and Dmitry Muratov(Russia) | Ales Byalyatski(Belarus), Memorial Group(Russia) and Center for Civil Liberties (Ukraine) |
Economics | David Card, Joshua D. Angrist and Guido W. Imbens (All are Americans) | Ben Bernanke,Douglas Diamond,Philip Dybvig ( All are American) |
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