Ben Bernanke wrote a paper about the part banks plays in financial crises back in 1983. That research was crucial in 2008 when the Fed made the contentious choice to save the big banks. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was awarded to Bernanke and two colleagues yesterday for their work.
The purpose of that work’s consideration by the committee, how it affected Ben Bernanke’s approach to the 2008 financial crisis, and how it affects central bank policy today are the topics of today’s program.
Information from National Public Radio (NPR)