Best of #econtwitter - Nobel 2022 special edition
Throwback: 2021 Nobel special edition; and 2020 Nobel special edition
The prize
The Nobel Prize@NobelPrize
BREAKING NEWS:
The Royal Swedish Academy of Sciences 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.”
#NobelPrize
9:48 AM · Oct 10, 2022
4.65K Reposts · 10.2K Likes
Threads
Brian Albrecht@BrianCAlbrecht
This year’s Nobel prize goes to Bernanke, Diamond, and Dybvig “for research on banks and financial crises.”
What is their most famous work and what should you be reading to get up to speed? 🧵
10:34 AM · Oct 10, 2022
1.13K Reposts · 4.12K Likes
Gabriel Chodorow-Reich@gchodorowreich
Huge congratulations to a much-deserved prize. Work by @benbernanke on the Great Depression was a major motivation to my own research. And I teach Diamond-Dybvig in intermediate macro every year. A short thread on the scientific citation.
11:44 AM · Oct 10, 2022
150 Reposts · 890 Likes
Paul Krugman@paulkrugman
OK, some notes on the classic Diamond-Dybvig paper on bank runs, which exemplified the kind of economic analysis I've always loved: a (relatively) simple model that transforms your understanding, so that you'll never see things the same way again 1/
bu.edu
1:21 PM · Oct 10, 2022
423 Reposts · 1.6K Likes
Jonathan Rose@thejonrose
The Nobel Prize announcement talks about the depiction of a bank run in It's a Wonderful Life. A classic movie, a classic reference. Great stuff. It all has to stop.
nobelprize.org/uploads/2022/1…
2:38 PM · Oct 10, 2022
30 Reposts · 154 Likes
^‘generalizing from fictional evidence’ is not always a fallacy, but it seems pedagogically unfortunate that the standard examples of “bank runs” are exclusively It’s a Wonderful Life and Mary Poppins
David Andolfatto@dandolfa
Alright, so now I see what all the fuss is about. Sorry @NobelPrize, this sketch is not an accurate description of DD83. Let me explain...
The Nobel Prize @NobelPrize
The work for which Ben Bernanke, Douglas Diamond and Philip Dybvig are being recognised has been crucial to subsequent research that has enhanced our understanding of banks, bank regulation, banking crises and how financial crises should be managed.
#NobelPrize https://t.co/4drJwZ0yF9
3:15 AM · Oct 11, 2022
44 Reposts · 176 Likes
George Selgin@GeorgeSelgin
Diamond and Dybvig's model has been extremely influential--itself a sufficient qualification for their reward. But IMHO, it has served more to perpetuate myths about, than to shed needed light upon, the causes of banking instability.
Brian Albrecht @BrianCAlbrecht
People, the authors included, often use this model to justify deposit insurance. That has gotten some pushback.
For a clear explanation of the model and policy implications, I'd recommend @GeorgeSelgin's two pieces https://t.co/rKOAgsFnAL
https://t.co/vGKWe8zvuz
11:47 AM · Oct 10, 2022
13 Reposts · 50 Likes
Husnu C. Dalgic@HCD342
I teach Diamond and Dybivg (83) every year to my 1 st year PhD class. The beauty is that it is simple and
offers a solution due to which we don’t see classical bank runs anymore, more on this 👇
9:18 AM · Oct 14, 2022
15 Reposts · 112 Likes
More: Atif Mian, Stephen Williamson, the indispensable Marginal Revolution 1 / 2 / 3
Nobel Prize meta
Ben Golub 🇺🇦@ben_golub
recalling a lovely thought of my friend @SNageebAli apropos of grumbles about whether some particular Nobel-winning work is "good":
The role of a Nobel isn't to tell us what is good economics: we can think for ourselves. It's to recognize work that has shaped the field.
2:35 AM · Oct 10, 2022
7 Reposts · 57 Likes
^as always, inclusion in the newsletter is not an endorsement
Memes
maia@maiamindel
When you win a Nobel Prize but are still an "et al"
3:25 PM · Oct 10, 2022
167 Reposts · 2.15K Likes
Neoliberal 🌐🇺🇦@ne0liberal
I've cracked open the vault of rare Bernanke memes on this glorious day
2:03 PM · Oct 10, 2022
66 Reposts · 1.02K Likes
Matthew@AlampayDavis
A central bank giving a Nobel Prize to a central banker for central banking
9:51 AM · Oct 10, 2022
611 Reposts · 7.55K Likes