Bernanke, former Fed chairman, shares the 2022 Nobel Prize in Economics

Former US Federal Reserve Chairman Ben S. Bernanke and US-based economists Douglas W. Diamond and Philip H. Dybvig won the Nobel Prize in economics on Monday for their “research on banks and financial crises.”

The Royal Swedish Academy of Sciences announced the recognition in Stockholm.

The committee said its work had shown “why preventing the collapse of banks is vital”.

Bernanke, 68, who was Fed chairman from early 2006 to early 2014 and now works at the Brookings Institution in Washington, examined the Great Depression of the 1930s and showed the danger of bank runs (when the panicked people withdraw their savings) and how banks collapse. led to widespread economic devastation.

The award includes a cash prize of 10 million Swedish kronor (nearly $900,000) and will be presented on December 10.

Unlike other prizes, the economics prize was not established in Alfred Nobel’s will in 1895, but by the Swedish central bank in his memory. The first winner was chosen in 1969.

Last year’s Nobel Prize for Economics was distributed. David Card received half for his research on how the minimum wage, immigration and education affect the labor market. The other half went to Joshua Angrist and Guido Imbens for proposing how to study questions that don’t fit easily into traditional scientific methods.

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