The Nobel committee said the work of Bernanke, Diamond and Dybvig was critical to research that has increased our understanding of banks, bank regulation, banking crises and how to manage financial crises.
The Nobel Committee stated that the theoretical models developed by the Nobel laureates explain why banks exist, bank failures, and how society can reduce this risk.
Two of this year’s three laureates, Diamond and Dybwig, also put forward a solution to overcome the plight of banks. She clarified that deposit insurance from the government would be a solution to that. The fact that the government has guaranteed their money will increase investors’ confidence in the banks.
Diamond’s studies also suggest that banks perform important social roles. Banks act as intermediaries between borrowers and borrowers. It also helps to understand the creditworthiness of the borrowers and ensure that the loans are properly disbursed.
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
Between 1969 and 2021, the Nobel Prize in Economics has been awarded 53 times to 89 individuals. 2021 for three US-based economists
Received the Nobel Prize in Economics. David Card, Joshua D’Angrist, Guido W. The prize was awarded to three economists named Impens. David Card received the award for his work-related studies. The other two were awarded for their contributions in the field of casual relationships.
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Meanwhile, this year’s Nobel Prize in Physics was also announced earlier. The Nobel goes to Alan Aspect, John F. Closer, and Anton Silinger. The award was given for contributions in quantum mechanics.
They led important experiments on the cornerstones of quantum mechanics. Their experiments have also given impetus to new branches of science such as quantum information science.
Last year too, the Nobel Prize in Physics was shared by three people. Suukuro Manabe, Klaus Hasselman and Giorgio Parisi received the award.
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