Ben Bernanke, Douglas Diamond and Philip Dybvig were awarded the Nobel Prize ||Nobel prize 2022!! Tranding Now

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Ben Bernanke, a former chair of the Federal Reserve, Philip Dybvig, and Douglas Diamond received the economics Nobel Prize on Monday for their studies of banks and financial crises.

The 1930s Great Depression had a profound impact on society and paralysed the economy of the world for many years. However, thanks to the scientific discoveries of this year's Economic Sciences Prize winners Ben Bernanke, Douglas Diamond, and Philip Dybvig, we have better handled successive financial crises. They have shown how crucial it is to stop widespread bank failures.

Could we survive without banks if banking crises may inflict such significant damage? Why are banks need to be so unstable, if at all? How can society increase the banking

 system's stability? Why do a banking crisis' effects linger for so long? And if banks collapse, why can't new ones be started right afterwards so the economy can quickly rebound? The three winners of this year's prize, Ben Bernanke, Douglas Diamond, and Philip Dybvig, established the scientific framework for contemporary study of these concerns in three works in the early 1980s.

Theoretical models created by Diamond and Dybvig explain why banks exist, how their social function makes them susceptible to rumours of impending failure, and how society might minimise this vulnerability. These realisations serve as the cornerstone of contemporary bank regulation.

Bernanke, who led the US central bank during the 2008 financial crisis, received the award for his research on the Great Depression. His work showed that bank runs were a decisive reason the crisis became so severe and entrenched