- The Royal Swedish Academy of Sciences in Stockholm on Monday named Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig as the winners of this year’s Nobel economics award.
- In normal circumstances, this works well: banks can loan money out to borrowers, providing them with a long maturity to pay the loan back, and keeping only a small fraction of cash on hand for its customers’ short-term liquidity needs.
- If all depositors try to withdraw their savings at the same time, as they do in a bank run, the banks wouldn’t be able to meet all demand and would quickly go bankrupt.
Nobel Prize: Bernanke, Diamond, Dybvig win 2022 award for economics 10.10.2022
