Crisis Nobels: A reminder sound banking regulation is vital

It may be hard to remember a time when the need to protect the workings of the banking system and possible response to a major crisis was as clearly understood

The Nobel Memorial Prize in Economic Sciences for 2022 has been awarded to three economists based in the United States: Ben Bernanke, Douglas Diamond, and Philip Dybvig. The citation for the Prize notes that all the three economists in question have worked on the centrality of the financial system to economic crises, and on how governments can and should intervene to prevent or ameliorate such financial crises. Mr Bernanke famously was “the right man in the right job at the right time”, in that his studies of the responses, both successful and unsuccessful, to the 1930s Depression came in handy