Former Federal Reserve Chairman Ben Bernanke has been awarded the Nobel Prize in Economics. The Nobel Prize committee believes it “significantly improved our understanding of the role of banks in the economy, particularly during financial crises.” Many people, however, blame Bernanke for bringing us “to the brink of collapse and under a mountain of debt with quantitative easing.”
The Royal Swedish Academy of Sciences announced on Monday that it has decided to award the 2022 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Ben S. Bernanke, Douglas W. Diamond, and Philip H. Dybvig “for research on banks and financial crises.” The Royal Swedish Academy of Sciences is responsible for selecting Nobel laureates in economic sciences.
The announcement details:
“This year’s laureates in Economic Sciences, Ben Bernanke, Douglas Diamond, and Philip Dybvig, have significantly improved our understanding of the role of banks in the economy, particularly during financial crises. An important finding in their research is why avoiding bank collapses is vital.”
Ben Bernanke analyzed the Great Depression of the 1930s, the worst economic crisis in modern history. Among other things, it showed how bank runs were a decisive factor in making the crisis so deep and prolonged,” the announcement adds.
Bernanke is currently a Senior Fellow in the Economic Studies program at the Brookings Institution. Diamond is the Merton H. Miller Distinguished Service Professor of Finance at the University Of Chicago Booth School Of Business. Dybvig is the Boatmen’s Bancshares Professor of Banking and Finance at Washington University’s Olin School of Business in St. Louis.
“Bernanke brought us to the brink of collapse”
Many people took to social media to mock the Nobel Prize committee for awarding Bernake.
Big Short investor Michael Burry tweeted: “Bernanke receives the Nobel Prize in Economics. It’s not a joke.” Alasdair Macleod, Goldmoney’s head of research, wrote: “If I hadn’t done it sooner, I think this shows that the Nobel Prize Committee has lost all credibility.”
Gold bug Peter Schiff tweeted:
Fiore Group CEO and Lionsgate Entertainment founder Frank Giustra said: “I’m speechless. A Nobel Prize for the individual who promised us in 2009 that the Fed’s monetary policy would return to its “normal” self, meaning the central bank would return to a modestly sized balance sheet. Instead, we have a historical bubble and inequality.”
Vaneck advisor Gabor Gurbacs noted:
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