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Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

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Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#21

Post by ianai »

Maybe this will remind people what the Fed of former years was like. I suspect Powells tenure will eventually be looked upon with scorn. I deeply suspected the market was overvalued in 2018.

They should have been raising interest rates well before the pandemic. Then they wouldn’t have had to do quite as many unprecedented things, most likely.

You do not want a Fed simply trying to time the market cycle around election cycles. And one has to wonder what they were up to in 15-16. And 17, 18, 19, etc.

Edit-but not to say Bernankes time was great. Just that sometimes a historical contrast to the present makes things really stick out. I can never forgive bailing out banks, inventing the concept “too big to fail”, and pushing people out of their homes and into the streets. I was directly affected by that and just might never own a house as part of the long term fallout.

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#22

Post by piva00 »

johndoe0815 wrote: post #19
snake_doc wrote: post #10

Earlier quoted context omitted.

Semantics… even the Associated Press calls it the Nobel Prize in Economics: > STOCKHOLM (AP) — This year’s Nobel Prize in economic sciences has been awarded to the former chair of the U.S. Federal Reserve, Ben S. Bernanke, and two U.S.-based economists, Douglas W. Diamond and Philip H. Dybvig, “for research on banks and financial crises https://apnews.com/article/nobel-economy-bernanke-2bb3eaee67...

It's semantics, but it's still incorrect... Alfred Nobel never intended to award a prize in economics (and neither one in Mathematics, though the background of _that_ might be more interesting). From https://www.nobelprize.org/alfred-nobel/alfred-nobels-will/ "The interest is to be divided into five equal parts and distributed as follows: one part to the person who made the most important discovery or invention in th…

You are stretching the definition of Nobel Prizes to only be considered in its original form. Other prizes were included over time and are considered Nobel Prizes by the institution that awards them.

You are creating a strawman to attack it. By any definition in 2022 the Economics prize is a Nobel Prize.

You not recognising it due to your strict definition doesn't really change the reality that it's called a Nobel Prize.

What a strange ghost to create and attack...

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#23

Post by snake_doc »

johndoe0815 wrote: post #19
snake_doc wrote: post #10

Earlier quoted context omitted.

Semantics… even the Associated Press calls it the Nobel Prize in Economics: > STOCKHOLM (AP) — This year’s Nobel Prize in economic sciences has been awarded to the former chair of the U.S. Federal Reserve, Ben S. Bernanke, and two U.S.-based economists, Douglas W. Diamond and Philip H. Dybvig, “for research on banks and financial crises https://apnews.com/article/nobel-economy-bernanke-2bb3eaee67...

It's semantics, but it's still incorrect... Alfred Nobel never intended to award a prize in economics (and neither one in Mathematics, though the background of _that_ might be more interesting). From https://www.nobelprize.org/alfred-nobel/alfred-nobels-will/ "The interest is to be divided into five equal parts and distributed as follows: one part to the person who made the most important discovery or invention in th…

Please direct your concerns to AP if you find the common interpretation so appalling to be incorrect. Thanks.

> Want to reach out with a comment or fact-checking suggestion? Do you see something that needs a correction? Email us at FactCheck@ap.org.

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#24

Post by yobbo »

Lionga wrote: post #13
belter wrote: post #4

It's the "Nobel Memorial Prize in Economic Sciences", and it's Bernanke prize for his work before, after or during the crisis? https://en.wikipedia.org/wiki/Nobel_Memorial_Prize_in_Econom... "Bernanke Admits Fed Made Mistakes Combating Crisis 10 Years Ago" "...Former Federal Reserve Chairman Ben Bernanke acknowledged that policy makers made two critical errors fighting the financial crisis a decade ago: They failed t…

Its the prize from the central bank of Sweden for bailing out banks with tax money and giving them clear sign they can leverage and risk as much as they want, if anything goes bad tax payers will have to pay for it.

You are right in spirit but, technically, the central bank does not use tax money.

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#25

Post by jonnybgood »

Lionga wrote: post #15
T-A wrote: post #7

Earlier quoted context omitted.

https://www.nobelprize.org/prizes/economic-sciences/2022/pop... Bernanke’s research shows that bank crises can potentially have catastrophic consequences. This insight illustrates the importance of well-functioning bank regulation, and was also the reasoning behind crucial elements of economic policy during the financial crisis of 2008–2009. At this time, Bernanke was head of the US central bank, the Federal Reserve,…

The consequences of the FED money printing are just starting to show. The everything bubble this time might become much worse than the housing bubble of 2008.

What if the Fed didn’t respond the way it did? What would of happened? And what were the alternatives?

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#26

Post by dereg »

paganel wrote: post #12
dereg wrote: post #9

You can feel however you feel about Bernanke during his tenure as Fed Chair. He was certainly hard to like at times, perhaps sometimes too smug. But his work laying out the pernicious effects of deflationary feedback loops as as an academic is probably one of the most influential works of monetary economics out there. I suggest people actually reading his papers before making a knee jerk reaction.

> pernicious effects of deflationary feedback loops Serious question: were those results really put to the test? Apart from looking back at the New Deal era and getting from there whatever it's politically convenient at any one point.

Bernanke has his fingerprints on every large central banks' response in the wake of the 2008 Global Financial Crisis. He flooded the system with liquidity to prevent what he observed in the Great Depression. Was he successful? Yes. We didn't suffer from a recession anywhere near the magnitude of the depression. Did you like how he did it and what happened as a result? I'm guessing you didn't.[1]

Part of the fun of economic and monetary history is following the umpteen competing explanations for recessions and bubbles and piecing together a mosaic of all that seems to make sense. Bystanders have the luxury of not writing those papers unlike academics, who often chain themselves to their own work/school of thought.

Every monetary theory is based on a very limited set of observations. Policies borne out of those theories are even more scarce. I don't expect anyone to be right or wrong all the time. In my opinion, the best way to understand economics is to have a base set of principles and be theoretically promiscuous.

[1] I tend to be a free market fundamentalist so I didn't like it either. That doesn't mean it didn't work.

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#27

Post by raspberry1337 »

Economics is not a science. Most papers in finance/economics are not repeatable or even applicable in real life - as was displayed when the worlds number one hedgefund started the process of reading published financial papers and trying to apply them [1]

[1]https://www.goodreads.com/book/show/43889703-the-man-who-sol...

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#28

Post by pas »

raspberry1337 wrote: post #27

Economics is not a science. Most papers in finance/economics are not repeatable or even applicable in real life - as was displayed when the worlds number one hedgefund started the process of reading published financial papers and trying to apply them [1] [1] https://www.goodreads.com/book/show/43889703-the-man-who-sol...

do they use the scientific method? yes. it's science.

is it good science? that's of course a bit subjective, but the trend in looking for clever natural experiments is, IHMO, a good direction. of course there is a long way to get there as you point out, replication, due to confounders and whatnot is still a big issue.

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#29

Post by Hendrikto »

T-A wrote: post #7
belter wrote: post #4

It's the "Nobel Memorial Prize in Economic Sciences", and it's Bernanke prize for his work before, after or during the crisis? https://en.wikipedia.org/wiki/Nobel_Memorial_Prize_in_Econom... "Bernanke Admits Fed Made Mistakes Combating Crisis 10 Years Ago" "...Former Federal Reserve Chairman Ben Bernanke acknowledged that policy makers made two critical errors fighting the financial crisis a decade ago: They failed t…

https://www.nobelprize.org/prizes/economic-sciences/2022/pop... Bernanke’s research shows that bank crises can potentially have catastrophic consequences. This insight illustrates the importance of well-functioning bank regulation, and was also the reasoning behind crucial elements of economic policy during the financial crisis of 2008–2009. At this time, Bernanke was head of the US central bank, the Federal Reserve,…

> these latter crises did not develop into new depressions with devastating consequences for society.

That is a bit premature to claim…

Re: Nobel Prize in Economics Awarded to Ben Bernanke, Douglas Diamond, Philip Dybvig

#30

Post by ianai »

raspberry1337 wrote: post #27

Economics is not a science. Most papers in finance/economics are not repeatable or even applicable in real life - as was displayed when the worlds number one hedgefund started the process of reading published financial papers and trying to apply them [1] [1] https://www.goodreads.com/book/show/43889703-the-man-who-sol...

As an academic field, too, I found it to be quite toxic. You can get published in the best Econ journals by merely being the only person with the data. So of course it won’t be reproduced.

That said, it is understandably hard to run economic experiments. No one’s going to stand up a couple countries to then poke around with policy and see what happens. (Though maybe simulations will or have made this sort of thing possible.)

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