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US trio, including ex-Fed chief Bernanke, win economics Nobel
Bernanke, together with Douglas Diamond and Philip Dybvig, were honoured for having "significantly improved our understanding of the role of banks in the economy, particularly during financial crises, as well as how to regulate financial markets", the jury said.
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University of Chicago Professor Douglas Diamond (center) celebrates with students and faculty at the university shortly after learning he had won the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022 on October 10, 2022 in Chicago, Illinois. Diamond shares the prize with Ben Bernanke of the Brookings Institution and Philip Dybvig of Washington University in St. Louis.
(AFP/Scott Olson/Getty Images)
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US trio including ex-Federal Reserve chief Ben Bernanke, who played a key role battling the 2008 financial crisis, won the economics Nobel on Monday for research on banks in times of turmoil.
Bernanke, together with Douglas Diamond and Philip Dybvig, were honoured for having "significantly improved our understanding of the role of banks in the economy, particularly during financial crises, as well as how to regulate financial markets", the jury said.
Bernanke, 68, has been both credited for spurring recovery after the 2008 recession and pilloried by critics for doing little to avert it, allowing investment bank Lehman Brothers to collapse.
He received the award for his analysis, conducted in the early 1980s, of the Great Depression in the 1930s, the worst economic crisis in modern history.
In particular, Bernanke showed "how failing banks played a decisive role in the global depression," making the downturn "not only deep, but also long-lasting," the Nobel jury noted.
In his role as chief of the central bank, Bernanke "was able to put knowledge from research into policy" during the financial crisis of 2008-2009, the Nobel Committee said.
Bernanke has been hailed for the Fed's unorthodox response of slashing interest rates and flooding the financial system with liquidity.
