Three American economists have won the Nobel Prize in economics for their research on banks and financial crises.
Former Federal Reserve Chair Ben Bernanke, Prof. Douglas Diamond and Prof. Philip Dybvig have significantly improved the understanding of the role of banks in the economy, particularly during financial crises, The Royal Swedish Academy of Sciences said on Monday. An important finding in their research is why avoiding bank collapses is vital.
"Modern banking research clarifies why we have banks, how to make them less vulnerable in crises and how bank collapses exacerbate financial crises. The foundations of this research were laid by Ben Bernanke, Douglas Diamond and Philip Dybvig in the early 1980s. Their analyses have been of great practical importance in regulating financial markets and dealing with financial crises," the award committee said in a press release.
by Joji Xavier
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