American experts, Ben S. Bernanke, Douglas Diamond and Philip Dybwig, have been awarded the 2022 Nobel Prize in Economics in recognition of their seminal work on bank crises in the context of the global financial crisis. Photo: Nobel Academy
Sweden: This year, the Nobel Prize in Economics was awarded to three American experts who have done important research on the effects and crisis on banks, especially the global recession and the global pandemic.
Members of Sweden’s Royal Academy announced the 2022 Nobel Prize winners in economics at a news conference, including former US Federal Reserve Chairman Ben Bernanke, while other laureates include Douglas W. Diamond and Philip H. Dybwig. have been taken.
These three experts presented their basic research to end the global economic recession in 2008 and the recent Covid crisis, especially the banking crisis, with promising results. Even these three experts have got the honor of doing very basic work in this field.
The three experts have also devised a mechanism to regularize the bank, overcome the economic crisis and access money to the account holders. The Swedish Academy has said in a statement that the way banks managed themselves during the global recession and the Covid epidemic was possible only thanks to the research and thinking of these three experts. Thus the society as a whole was benefited.
Douglas Diamond, one of the award-winning experts, said that while the bailout package has its flaws, it has positive economic effects. In this regard, he cited the example of Lehman Brothers, an investment bank that saved it from bankruptcy and mitigated the economic crisis.
On the other hand, Ben Bernanke, now of the Brookings Institute, was the head of the US Federal Reserve at the time and said there was no legal way to save Lehman and let it fail while other economic indicators and the system were preserved. . Then Bernanke also presented his seminal work on the role of banks in the economic downturn. He had said that the entire economic system becomes vulnerable when the bank is destroyed. And practical measures to save him were also presented.
A third expert, Philip DeGwig, currently associated with Washington University in St. Louis, insists that keeping short-term deposits in banks while they lend money for the long term would be a great move. Practical and positive aspects of this idea have also been coming forward.
The total prize money for this year’s Nobel Prize in Economics is 10 million Swedish crowns or 885,000 US dollars, which will be divided equally among the three laureates.
