tripartite of American economists, including former US Federal Reserve Chairman Ben Bernanke won This year’s Nobel Prize in economic science on Monday for they research in repercussions of bank failure and setting foundation of how The world running now global crises like The last pandemic or the Great Recession of 2008.
Bernanke, who Putting his academic experience on The Great Depression of work American Revival economy After 2007-2008 financial Crisis, Monday has been recognized all along with Douglas W. Diamond and Philip H. Deepvig.
Nobel panel at the Royal Swedish Academy of Sciences in The Stockholm Trio said research Show why avoid bank Meltdowns are vital.”
With their findings in In the early 1980s, the winners laid the foundations for Organize financial markets panel He said.
Financial crises and depression are good of The worst thing that can happen to an economy, said John Hasler of The Commission for the prize in economic science. These things can happen again. and we need to have an understanding of mechanism behind These and what to do about it. And the holders of this year states that.”
Bernanke, 68, now with Brookings Institution in Washington, I checked the Great Depression of 1930s, show danger of bank runs – when you panic people Withdraw their savings – and how bank The collapses led to widespread economic devastation. Before Bernanke, economists saw bank As a result, not a cause of Economic downturn.
Diamond, 68, is based at the university of Chicago and Dibwig, 67 years old, who at the University of Washington in St. Louis showed how government Guarantees on sediment and can prevent surge of financial crises. In 1983, they co-authored “Managing Banks, Deposit Insurance, and Liquidity” in Heal the damage part of runs on banks.
Diamond said the Nobel Prize was a surprise. Monday morning, he said, “I slept very deeply and then everything of suddenly, off My cell phone is gone with good news From the Nobel Committee.
When it comes to global Economic disruption caused by the COVID-19 pandemic and the Russian war in Ukraine Diamond said financial system It is “much less prone” to crises due to of memories of 2000s collapse and improved Regulation.
“The problem Is that these loopholes of the fear of runs Can turmoil and crises show up Anywhere in The financial section. They don’t have to be commercial banks.”
triple research took on great real-world Significance when investors sent financial system In a panic during the fall of 2008.
Bernanke, then head of Fed Team up with US Treasury to support up Big banks and mitigating the shortage of Credit, lifeline of The economy.
short cut-term interest rates to zerodirecting Fed purchases of Treasury investments, mortgages and set up Unprecedented Lending programs. Collectively, these steps Calm and fortify investors big banks.
that they also long paid-term Interest rates to historical lows and led to severe criticism of Bernanke, particularly from some of the 2012 Republican presidential candidates, that the Fed was hurting value of The dollar and run risk of Ignite inflation later.
Fed action under Bernanke extended Authority of Center bank In an unprecedented area. They could not prevent the longest and most painful recession since the 1930s. But in In hindsight, the Federal Reserve moves was the credit with save the banks system And avoid another depression.
The Fed created a former Bernanke for Center bank to answer with speed And the force to economic shocks.
When COVID-19 criticized the United States economy in In early 2020, the Federal Reserve, under Jerome Powell, briefly-term interest rates back to me zero pump it money inside the financial system. Aggressive interference – along with particle government Expenditure – quickly ended deflation and triggered a powerful economic recovery.
But fast back also came in cost: inflation has begun rising quickly last year Now it’s close to 40.year Rallies, forcing the Federal Reserve to reverse course and raise interest rates to cool economy. Central banks around world also Taking steps Where inflation erodes consumer spending power.
In a groundbreaking 1983 paper, Bernanke explored role of bank failure in Deepening and prolonging the Great Depression of thirties.
Before that, economists blamed on Fed for Not printing enough money to me support The economy She is sinking. Bernanke agreed but found this deficiency of money He couldn’t explain why the depression was so devastating and lasted so long. The problemis found was collapse of banking system. Panicked savers pulled out money out of dilapidated banks, which were then unable to provide loans that kept economy grow.
The result, the Nobel Committee wrote: “was the worst global Recession in modern history. “
Economy award crowned off week of Nobel prize announcements in Medicine, Physics, Chemistry, Literature as well as the Peace Prize.
They carry a cash award of 10 million Swedish kronor (approximately $900,000) to be delivered out on Dec 10.
Unlike other awards, economics award Not established in Alfred Nobel’s will of 1895 but by the central Swedish bank in for him memory. The first winner selected in 1969.
tripartite of American economists, including former US Federal Reserve Chairman Ben Bernanke won This year’s Nobel Prize in economic science on Monday for they research in repercussions of bank failure and setting foundation of how The world running now global crises like The last pandemic or the Great Recession of 2008.
Bernanke, who Putting his academic experience on The Great Depression of work American Revival economy After 2007-2008 financial Crisis, Monday has been recognized all along with Douglas W. Diamond and Philip H. Deepvig.
Nobel panel at the Royal Swedish Academy of Sciences in The Stockholm Trio said research Show why avoid bank Meltdowns are vital.”
With their findings in In the early 1980s, the winners laid the foundations for Organize financial markets panel He said.
Financial crises and depression are good of The worst thing that can happen to an economy, said John Hasler of The Commission for the prize in economic science. These things can happen again. and we need to have an understanding of mechanism behind These and what to do about it. And the holders of this year states that.”
Bernanke, 68, now with Brookings Institution in Washington, I checked the Great Depression of 1930s, show danger of bank runs – when you panic people Withdraw their savings – and how bank The collapses led to widespread economic devastation. Before Bernanke, economists saw bank As a result, not a cause of Economic downturn.
Diamond, 68, is based at the university of Chicago and Dibwig, 67 years old, who at the University of Washington in St. Louis showed how government Guarantees on sediment and can prevent surge of financial crises. In 1983, they co-authored “Managing Banks, Deposit Insurance, and Liquidity” in Heal the damage part of runs on banks.
Diamond said the Nobel Prize was a surprise. Monday morning, he said, “I slept very deeply and then everything of suddenly, off My cell phone is gone with good news From the Nobel Committee.
When it comes to global Economic disruption caused by the COVID-19 pandemic and the Russian war in Ukraine Diamond said financial system It is “much less prone” to crises due to of memories of 2000s collapse and improved Regulation.
“The problem Is that these loopholes of the fear of runs Can turmoil and crises show up Anywhere in The financial section. They don’t have to be commercial banks.”
triple research took on great real-world Significance when investors sent financial system In a panic during the fall of 2008.
Bernanke, then head of Fed Team up with US Treasury to support up Big banks and mitigating the shortage of Credit, lifeline of The economy.
short cut-term interest rates to zerodirecting Fed purchases of Treasury investments, mortgages and set up Unprecedented Lending programs. Collectively, these steps Calm and fortify investors big banks.
that they also long paid-term Interest rates to historical lows and led to severe criticism of Bernanke, particularly from some of the 2012 Republican presidential candidates, that the Fed was hurting value of The dollar and run risk of Ignite inflation later.
Fed action under Bernanke extended Authority of Center bank In an unprecedented area. They could not prevent the longest and most painful recession since the 1930s. But in In hindsight, the Federal Reserve moves was the credit with save the banks system And avoid another depression.
The Fed created a former Bernanke for Center bank to answer with speed And the force to economic shocks.
When COVID-19 criticized the United States economy in In early 2020, the Federal Reserve, under Jerome Powell, briefly-term interest rates back to me zero pump it money inside the financial system. Aggressive interference – along with particle government Expenditure – quickly ended deflation and triggered a powerful economic recovery.
But fast back also came in cost: inflation has begun rising quickly last year Now it’s close to 40.year Rallies, forcing the Federal Reserve to reverse course and raise interest rates to cool economy. Central banks around world also Taking steps Where inflation erodes consumer spending power.
In a groundbreaking 1983 paper, Bernanke explored role of bank failure in Deepening and prolonging the Great Depression of thirties.
Before that, economists blamed on Fed for Not printing enough money to me support The economy She is sinking. Bernanke agreed but found this deficiency of money He couldn’t explain why the depression was so devastating and lasted so long. The problemis found was collapse of banking system. Panicked savers pulled out money out of dilapidated banks, which were then unable to provide loans that kept economy grow.
The result, the Nobel Committee wrote: “was the worst global Recession in modern history. “
Economy award crowned off week of Nobel prize announcements in Medicine, Physics, Chemistry, Literature as well as the Peace Prize.
They carry a cash award of 10 million Swedish kronor (approximately $900,000) to be delivered out on Dec 10.
Unlike other awards, economics award Not established in Alfred Nobel’s will of 1895 but by the central Swedish bank in for him memory. The first winner selected in 1969.