Three U.S.-based economists including former Federal Reserve Chair Ben Bernanke won this year's Nobel Prize in economic sciences for their research into the fallout from bank failures.
The financial system is less vulnerable to crises like the COVID-19 pandemic and the war in Ukraine because of regulations since the 2000s collapse.Former Federal Reserve Chair Ben Bernanke and two other U.S.-based economists won the Nobel Prize in economics for research into bank failures -- work that built on lessons learned in the Great Depression and helped shape America's aggressive response to the 2007-2008 financial crisis.
Bernanke, 68, examined the Great Depression of the 1930s when he was a professor at Stanford University, showing the danger of bank runs - when panicked people withdraw their savings - and how bank collapses led to widespread economic devastation. He was Fed chair from early 2006 to early 2014 and is now with the Brookings Institution in Washington.Diamond, 68, based at the University of Chicago, and Dybvig, 67, based at Washington University in St.
Bernanke, then head of the Fed, teamed up with the U.S. Treasury Department to prop up major banks and ease a shortage of credit, the lifeblood of the economy. When COVID-19 slammed the U.S. economy in early 2020, the Fed, under Chair Jerome Powell, quickly cut short-term interest rates back to zero and pumped money into the financial system. The aggressive intervention - along with massive government spending - quickly ended the downturn and triggered a powerful economic recovery.
In a groundbreaking 1983 paper, Bernanke explored the role of bank failures in deepening and lengthening the Great Depression of the 1930s.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Three US-based economists given Nobel Prize for work on banksThis year's Nobel Prize in economic sciences has been awarded to the former chair of the U.S. Federal Reserve, Ben S. Bernanke, and two U.S.-based economists, Douglas W. Diamond and Philip H. Dybvig, 'for research on banks and financial crises.'
Read more »
Long Beach Police Investigate Three Home Burglaries in One NightLong Beach police are investigating three home burglaries that occurred in one night.
Read more »
Cardano Among Top Three Actively Developed Assets as Vasil Monitoring ContinuesICYMI: Cardano is currently one of the top three actively developed projects for the week Vasil ADA $ADA CardanoCommunity
Read more »
NYC shoplifter with 153 arrests booked again after fleecing three Rite AidsThe thefts from Rite Aid included seven cases of Corona beer and a shopping cart on Sept. 21, stolen Heineken on Sept. 23 and another 12-pack of Coronas on Friday.
Read more »
One dead, three injured in shooting near UC BerkeleyAn early Saturday morning shooting near UC Berkeley leaves three injured and one dead. Police say none of the victims are students.
Read more »