Advisory News Hubb
Advertisement Banner
  • Home
  • Laws & Ethics
  • Financial Advisory
  • Contact
No Result
View All Result
  • Home
  • Laws & Ethics
  • Financial Advisory
  • Contact
No Result
View All Result
Gourmet News Hubb
No Result
View All Result
Home Financial Advisory

Ex-Fed Chair Bernanke, Two Other U.S. Economists Win Nobel Prize for Bank Research

admin by admin
October 10, 2022
in Financial Advisory


Former Federal Reserve Chair Ben Bernanke and two other U.S economists, Douglas Diamond and Philip Dybvig, won the Nobel Memorial Prize in Economic Sciences for work over the course of four decades on the role that bank bailouts play in financial crises.

Key Takeaways

  • Three U.S. economists won the 2022 Nobel Economics Prize for work on banks and financial crises.
  • Ben Bernanke, Douglas Diamond, and Philip Dybvig were awarded the Nobel
  • Bernanke is the former chair of the Federal Reserve; Diamond and Dybvig are economics professors.

Research on Banks and Financial Crises

The trio were awarded the prize Oct. 10 for research on bank regulation and the use of public funds to bail out failing lenders in times of economic turmoil as well as how to prevent even deeper crises. In particular, the Royal Swedish Academy of Sciences said they showed how governments can use deposit insurance and act as a lender of last resort to head off bank runs that are often “a self-fulfilling prophecy” as rumors fuel simultaneous withdrawals by customers.

The Academy cited their work as central to how central banks and regulators responded to the Great Recession and turmoil surrounding the COVID-19 pandemic, establishing that “avoiding bank collapses is vital.” During the Great Recession, Bernanke, the Fed Chair at the time, said the best option for investment bank Lehman Brothers was to let it collapse because it couldn’t legally be saved. Bernanke, Diamond, and Dybvig’s more recent research represents a shift in approach.

Implications for Current Economic Climate

The Nobel laureates’ research is timely both for its implications for financial crises of the last two decades and also because of a background today of significant inflation and rising interest rates. They demonstrated ways thank bank runs were a “decisive” factor in deepening and lengthening the Great Depression and said risks can be reduced by using “delegated monitoring,” in which banks are intermediaries between borrowers and savers. Such tools may help minimize the severity of the current economic turmoil.

Bernanke, Diamond, and Dybvig will equally split the prize of SEK10 million, or about $880,000.



Source link

Previous Post

Communicating Value Through The “Jobs To Be Done” Framework

Next Post

SCOTUS: Three Potential Patent Cases

Next Post

SCOTUS: Three Potential Patent Cases

Recommended

Join the AIPLA Law Journal Editorial Board

5 months ago

Trademark Registration: 100% THAT BITCH

15 hours ago

Prior Narrow Definition Does Not (Necessarily) Limit Claim Scope in Family Member

3 months ago

Industry vs. Sector: What’s the Difference?

4 weeks ago

Investing in Tesla Stock (TSLA)

2 months ago

Kitces & Carl Ep 104: How Do You NOT Grow (And Finding The Constraints To Help Say No)

1 week ago

Advisory-(-White-)

© 2022 Advisory News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Laws & Ethics
  • Financial Advisory
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Laws & Ethics
  • Financial Advisory
  • Contact

© 2022 Advisory News Hubb All rights reserved.