The Nobel Prize in Economics is awarded to Americans Ben Bernanke, Douglas Diamond and Philip Dybvig for their work on banks and financial crises

The Nobel Prize in Economics was awarded Monday, October 10 to Ben Bernanke, the former president of the American central bank (Fed), and his compatriots Douglas Diamond and Philip Dybvig, for their work on financial crises and banks. The threesome “has significantly improved our understanding of the role of banks in our economy, particularly during financial crises”, announced the jury. They have in particular “shown why avoiding the collapse of banks is vital”.

Why do banks exist?

Aged 68, Ben Bernanke was the boss of the American Central Bank (Fed) between 2006 and 2014. His mandate was also marked by the 2008 financial crisis and the fall of the American bank Lehman Brothers. In particular, he showed how massive withdrawals were a decisive factor in prolonging and worsening crises. Douglas Diamond and Philip Dybvig have developed theoretical models showing why banks exist and why their role in society makes them vulnerable to rumor about their impending collapse.