A Nobel Prize for Economics that recalls the importance of credit, even in this crisis

The Nobel Prize in Economics this year goes to former Fed Chairman Ben Bernanke (now at the Brookings Institution in Washington), Douglas Diamond of the University of Chicago e Philip Dybvig of the University of Washington in St. Louis for “their research on banks and financial crises”. The Royal Swedish Academy recognizes the centrality of the contribution of the three researchers in explaining the function of the banking system, the link between banking and financial crises and the role that rumors can play on the stability of the banking system. Studies by Bernanke, Diamond, and Dybvig helped develop modern mechanisms for regulating and supervising financial markets and supported the adoption of interventions that prevented the 2008 financial crisis from turning into another Great Depression.