Bernanke wins the Nobel; a former Fed chair is honored for explaining why banks fail

Fourteen years after the 2008 financial crisis, the Royal Swedish Academy of Sciences turned to the economists who explained why banking collapses do so much damage. On October 10, 2022, Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig were jointly awarded the Nobel Memorial Prize in Economic Sciences for research on banks and financial crises. Bernanke was cited for showing how bank runs deepened and prolonged the Great Depression; Diamond and Dybvig were recognized for their model of why runs happen and how deposit insurance can stop them. The three split the prize equally…