Nobel Prize in Economics 2022: goes to Bernanke, Diamond and Dybvig

in the area of Nobel Prize in Economics 2022 it reads:

This year’s awards in economics have significantly improved our understanding of the role of banks in the economy, especially during financial crises. An important finding of their research is why it is imperative to prevent bank collapses as they exacerbate financial crises. The foundation for this research was laid in the early 1980s by Ben Bernanke, Douglas Diamond and Philip Dybvig. Their analyzes have been of great practical importance in regulating financial markets and managing financial crises.

here are the winners of the prestigious award. Ben Bernanke currently teaches at the Brookings Institution in Washington. Douglas W. Diamond is a professor at the University of Chicago and Philip H. Dybvig is a teacher at Washington University in St. Louis. These prizes include a cash prize of SEK 10 million (nearly $900,000). Delivery is on December 10, 2022. The Nobel Prize for theEconomy was founded by the Swedish central bank in memory of Alfred Nobel.

Central banks are able to beat inflation, we often forget a lesson from Milton Friedman and that is that the monetary policy of central banks works with a delay. However, part of the problem is the very large deficits around the world: monetary policy and fiscal policy have to work together.

Douglas W. Diamond