Nobel Prize in Economic Sciences was awarded to Ben S

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The Nobel Memorial Prize in Economic Sciences was awarded on Monday to Ben S Bernanke, the former chair of the US Federal Reserve, and two other academics for research into banks and financial crises. Bernanke in 1983 wrote a paper that broke ground in explaining that bank failures can propagate a financial crisis rather than simply being a result of the crisis. That same year, Diamond and Dybvig wrote a paper on the risks inherent in maturity transformation, the process of turning short-term borrowing into long-term lending. Diamond also wrote about how banks monitor their borrowers, noting that knowledge about borrowers disappears upon bank failures, extending the consequences of the upheaval.