The Nobel Memorial Prize in Economic Sciences was awarded on Monday to Ben S. Bernanke, the former Federal Reserve chair, and two other academics for research into banks and financial crises.

source:zim bio

Douglas W. Diamond, an economist at the University of Chicago, and Philip H. Dybvig at Washington University in St. Louis won the prize alongside Mr. Bernanke, who is now at the Brookings Institution in Washington.

Mr. Bernanke in 1983 wrote a paper that broke ground in explaining that bank failures can propagate a financial crisis rather than simply being a result of the crisis.

source:zim bio

the process of turning short-term borrowing into long-term lending. Mr. Diamond also wrote about how banks monitor their borrowers,

source:zim bio

Douglas W. Diamond, an economist at the University of Chicago, Also won prize 

source:the conversasion

noting that knowledge about borrowers disappears upon bank failures, extending the consequences of the upheaval.

source:the conversasion

“The laureates have provided a foundation for our modern understanding of why banks are needed, why they’re vulnerable

source:the conversasion

and what to do about it,” said John Hassler, an economist at the Institute for International Economic Studies at Stockholm University and a member of the prize committee.

source:the conversasion

It is funded by Sweden’s central bank and has been given out only since 1969, though the Nobel committee promotes it and lists it on its website.

source:the conversasion