Former Fed boss Ben Bernanke wins Nobel Prize in economics with 2 others for their work on financial crises

Ben Bernanke won the economics prize for his work on banks and financial crises.

The prize will be shared by two economists and a former Fed chairman.

"This year's Laureates in the Economic Sciences have improved our understanding of the role of banks in the economy, particularly during financial crises," the committee said.

They found that avoiding bank collapses is important.

The analysis that showed the importance of banks in financial crises was one of the factors that led to the awarding of the 2022.

Past research into the Great Depression was praised by the man. The impact of the crisis was worsened when clients withdrew their money from a bank because they were worried about it failing.

The Great Depression of the 1930s was the worst economic crisis in modern history. He showed how bank runs were a big part of the crisis.

Valuable information about borrowers was lost when the banks failed. Society's ability to channel savings to productive investments was greatly reduced.

The winners of the physics, chemistry, medicine, literature, and peace category are Bernanke, Diamond and Dybvig.

A candidate who discovered that modern humans and Neanderthals had children together won the prize.