×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 10 October, 2022

  • 4 Min Read

Nobel Prize in Economic Science 2022

Nobel Prize in Economic Science 2022

  • Ben S. Bernanke, Douglas W. Diamond, and Philip H. Dybvig will receive the 2022 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel "for research on banks and financial crises," according to the Royal Swedish Academy of Sciences.
  • David Card, a Canadian-American, received half of the 2021 Nobel Prize in Economic Sciences (labour economics), and Joshua D. Angrist and Guido W. Imbens, Israeli-Americans, shared the other half (analysis of causal relationships).
  • Other 2022 Nobel Prizes have already been announced in literature, chemistry, physics, medicine, and peace.

Note

  • The Economics Prize was established by the Swedish Central Bank in Alfred Nobel's honour, not by his will, which established the other prizes, in 1895. In 1969, the first winner was chosen.

What impact have these Nobel Prize winners had on the banking industry?

Bernanke, Ben S.

  • The worst economic catastrophe in recent history—the Great Depression of the 1930s—was examined by Ben Bernanke.
  • Bernanke showed through statistical analysis how the global downturn of the 1930s was mostly caused by failing banks.
  • He demonstrated how bank runs were a crucial contributor to the crisis growing so severe and protracted.
  • It also made it easier to comprehend how crucial effective bank regulation is.
  • When the 2008 financial crisis broke out, Bernanke was in charge of the Federal Reserve, the US central bank, and he was able to "translate information from research into policy."

Philip H. Dybvig and Douglas W. Diamond:

  • In order to explain why banks exist, how their place in society makes them susceptible to rumours of their impending collapse, and how society might minimise this vulnerability, Diamond and Dybvig collaborated to build theoretical models. These realisations serve as the cornerstone of contemporary bank regulation.
  • They offered deposit protection from the government as a remedy for banks' vulnerability. Depositors won't need to hurry to the bank as soon as reports of a bank run first surface if they are aware that the state has guaranteed their money.

Read Also: Green Nobel Prize

Source: The Indian Express


India–Azerbaijan

A year after tensions arising from Operation Sindoor, India and Azerbaijan have taken steps to restore and normalise bilateral relations. The 6th round of Foreign Office Consultations, held in Baku, marked the first such engagement since 2022, signaling renewed diplomatic momentum. Recent Diplomatic Engagement During the consultations, bo

India–Australia Economic Cooperation and Trade Agreem

The India–Australia Economic Cooperation and Trade Agreement has completed four years since its signing. Both countries now aim to build on this progress through strengthened collaboration and ambitious targets, including reaching AUD 100 billion in bilateral trade by 2030. What is the India–Australia Economic Cooperation and Tra

ADR Report on Political Funding

A recent report by the Association for Democratic Reforms (ADR) analyses donations of ?20,000 or more declared to the Election Commission of India (ECI) by national political parties for FY 2024–25, highlighting transparency and accountability in political financing. Key Findings Massive Funding Surge Total donations to nationa

Maritime Chokepoints

Maritime chokepoints are narrow channels along global shipping routes where maritime traffic is concentrated. These points are geopolitically and economically critical, as they handle a large proportion of global trade, especially energy shipments. Current Relevance Over two-thirds of seaborne energy trade passes through a handful o

US-Israel-Iran War

Following the launch of Operation Epic Fury (U.S.) and Operation Roaring Lion (Israel), the geopolitical landscape has shifted fundamentally with the confirmed death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.Iran retaliated through Operation True Promise 4, launching missile attacks against Israel and nearby Gulf states. The escala

DNA

05 Apr,2026

Toppers

Search By Date

Newsletter Subscription
SMS Alerts

Important Links

UPSC GS Mains Crash Course - RAW