When the world is on the verge of a new global financial crisis, the 2022 Nobel Prize in Economics awarded by the Swedish organization will be awarded jointly to three economists who stood out in the fight against the 2008 debacle.
One is ben bernankewho was president of the United States Federal Reserve (FED) between 2006 and 2014.
The other two, Douglas Diamond and Philip H. Dybvigare American academics whose work helped governments and central entities around the world overcome the global financial crisis and avoid an economic depression like the one suffered in the 1930s.
Bernanke now distinguishes himself as an economist of Brookings Institution; Diamond is an economist from the University of Chicago; and Dybvig, an economist at the University of Washington.
As they said from Stockholm after announcing the winners of the 2022 Nobel Prize in Economics, the research of these three experts was invaluable in the 2008/2009 crisis, which brought the global financial system to the brink of the abyss.
According to the academy of sciences, “the work of the winners turned out to be key to understanding the crisis” and “the measures that were taken based on that research were based on the ideas that this award is now recognizing.”
Diamond said the award took him by surprise.
BREAKING NEWS:
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
Winners of the 2022 Nobel Prize in Economics
According to the Wall Street Journal, Diamond is an academic who spent most of his career studying the 1930s Great Depression at Princeton University and the Stanford Graduate School of Business.
Bernanke, meanwhile, rose to fame among economists for formulating unconventional policies from his position at the US FED.
Analysts credit Bernanke with averting a major economic calamity by devising aggressive new monetary policies (such as very low interest rates, lending to banks, and controversial bond-buying programs) during and after the financial crisis that began in 2007. and remained until 2009.
The exit from that crisis resulted in the longest economic expansion in the economic history of the United States.
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