MILANO – Il Nobel Prize for Economics 2022 was awarded to the former Fed chairman Ben Bernankea Douglas W. Diamond and Philip H. Dybvig. This was announced by the Royal Academy of Sciences in Sweden explaining that “their discoveries have improved the way society faces financial crises”.
It is the first time that a former central banker has been awarded the prestigious award. This year’s honors in Economics, it reads, “have significantly improved our understanding of the role of banks in the economy, particularly during financial crises. An important finding of their research is why it is critical. avoid bank collapses “since they” exacerbate financial crises “. “The foundations for this research were laid by Ben Bernanke, Douglas Diamond and Philip Dybvig in the early 1980s. Their analyzes have been of great practical importance in regulating financial markets and managing financial crises” continues the motivation.
Lehman Brothers, Bernanke admits: “Ten years ago, we made mistakes”
Ben S. Bernanke, born in 1953 in Augusta, currently teaches at the Brookings Institution in Washington. Douglas W. Diamond, born in 1953, is a professor at the University of Chicago and Philip H. Dybvig, born in 1955, is a professor at Washington University in St. Louis.
The Nobel Prizes include a cash prize of SEK 10 million (nearly $ 900,000) and will be awarded on 10 December. Unlike the other awards, the one for economics was not instituted in Alfred Nobel’s 1895 will, but by the Swedish central bank in his memory. The first winner was chosen in 1969.
Diamond: “Inflation will be defeated”
“Central banks are able to defeat inflation, we often forget a lesson from Milton Friedman and that is that the monetary policy of central banks acts with a delay,” said Douglas Diamond, called in real time by the Academy Royal of Sciences during the press conference for the awarding of the Nobel. However – said Diamond – “part of the problem is the very large deficits around the world: monetary policy and fiscal policy must work together”. Diamond stressed that the global financial system today “is much better prepared” for the eventuality of a financial crisis than in 2008