The Nobel Prize in Economics honors work on the role of banks in crises

For its 2022 edition, the Nobel Prize in Economics goes to a trio of Americans born between 1953 and 1955. Ben Bernanke, the former president of the Federal Reserve or Fed, the American central bank as well as the economists Douglas Diamond and Philip Dybvig, are rewarded for their studies on the role of banking institutions during crises.

The trio of winnershas significantly improved our understanding of the role of banks in our economy, particularly during financial crises, as well as how to regulate financial markets“, greeted the jury. Their ideas haveimproved our ability to avoid both severe crises and costly rescues“, underlines Tore Ellingsen, president of the committee for the Nobel Prize. “An important discoveryof the research of these three economists, whose work began in the 1980s, “was to show why it is vital to avoid the collapse of banks“, adds the Swedish academy.

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