Deniz Kılınç / Istanbul, October 10 (HNA) – Ex Fed chair Ben S. Bernanke, alog with Douglas W. Diamond and Philip H. Dybvig, won this year’s Nobel prize in economics for their “research on banks and financial crises”.
Bernanke, Diamond and Dybvig had a significant impact in understanding of the role of banks in the economy and how to regulate financial markets, especially during financial crises, the statement from the Royal Swedish Academy of Sciences said and added:
“Diamond and Dybvig developed theoretical models of why banks exist, how their role in society makes banks vulnerable to rumors of their impending collapse, and how society reduces that vulnerability.”
It was also pointed out that the work of three economists reduced the risk of financial crises turning into long-term depressions with sharp consequences for society.
The 3 economists will share the 10 million crowns (900 thousand dollars) worth of the award, according to the statement.
Scala Publishing, which has previously published Bernanke’s book titled The Courage to Act, is preparing to publish 21st Century Monetary Policy by Bernanke.