– Their work is very basic and of great practical importance. Especially, perhaps even now, when policy tightening and a strengthening dollar could trigger further crises – comments this year’s election on Twitter of Paul Krugman, winner of the 2008 Nobel Economics Prize.

The most famous winner this year was Ben Bernanke, who served as Fed chairman in 2006-14 and managed the US central bank during the 2007-09 financial crisis, and in 2009 became Time’s Man of the Year.

In his academic work, Bernanke specializes in the issue of financial crises. Bernanke points out that banks played an important role during the Great Depression of the 1930s.

The financial crisis and the role of banking in it also became the arena for the actions of the other two winners. Douglas W. Diamond and Philip H. Dybvig are best known for creating the Diamond-Dybvig model, which describes a phenomenon called panic banks.

In the opinion of Marcin Klucznik of PIE, this year’s selection of winners “in line with global economic risks in the coming quarters”.

High inflation and the rapid rise in interest rates around the world create, as experts point out, uncertainty about the future economic situation. It also raises concerns about the stability of the banking sector. According to experts, however, one should not expect a repeat of the crisis of the 1930s. – Supervision and control over the financial sector has increased significantly since then, Klucznik said.

This year’s winner Douglas W. Diamond seems to have the same opinion. – Currently, the banking sector is in good shape. The problem is that similar panics could arise in other sectors, Diamond said after receiving the award, commenting on the current tense situation in financial markets.

– It is possible to avoid a financial crisis by establishing very strict regulations, but the conclusion of our work is that it is better not to do itbecause it would incur exorbitant costs, particularly for the liquidity needed for the system, Douglas said.

The Swedish Bank Award The Alfred Nobel Prize in Economics is the only Nobel Prize that Alfred Nobel did not mention in his will. The founder of the prize is the Swedish bank, but the prize is awarded by the Nobel Committee according to a procedure similar to the others Nobel Prize.

Founded in 1968, in 2022, the Nobel Prize in Economics is awarded for the 54th. The winners will receive Nobel medals, diplomas and cash prizes in the amount of 10 million Swedish crowns, which is equivalent to about PLN 4.5 million.

The 2021 Nobel Prize in Economics is awarded to David Card, Josh D. Angrist, and Gudio W. Imbens for “developing methodologies for interpreting the results of natural experiments more effectively.”