Stuart Trow, Columnist

How Do We Fix Bernanke's Fixes? That's for a Future Nobel

This year’s Nobel laureates in economics underscore the consequences of monetary policy.

October 10, 2022 at 2:14 PM UTC

Stuart Trow is co-host of “Money, Money, Money” on Switch Radio and author of “The Bluffer’s Guide to Economics.” Previously, he was a strategist at the European Bank for Reconstruction and Development.

Ben Bernanke, former chairman of the U.S. Federal Reserve, wins the Nobel prize in economic sciences along with Douglas Diamond and Philip Dybvig. — Ben Bernanke, former chairman of the U.S. Federal Reserve, wins the Nobel prize in economic sciences along with Douglas Diamond and Philip Dybvig.
Source: Bloomberg

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Congratulations to Ben Bernanke, Douglas Diamond and Philip Dybvig, this year’s Nobel laureates in the Economic Sciences. As the citation reads, the trio have “significantly improved our understanding of the role of banks in the economy, particularly during financial crises.”

Few of us in life, and vanishingly few economists, get to put their work into practice on the largest stage Bernanke did in 2008. The former chair of the US Federal Reserve wasn’t merely debating hypotheticals with his grad students. He made critical decisions under the most intense pressure. And there is no doubt that his understanding of the precise nature of the crisis saved the global financial system in 2008.