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The Indicator from Planet Money

Bernanke, bank bailouts and the economics Nobel

The Indicator from Planet Money

NPR

Business

4.79.2K Ratings

🗓️ 12 October 2022

⏱️ 10 minutes

🧾️ Download transcript

Summary

Former Fed chair Ben Bernanke and two colleagues were awarded an economics Nobel for research on the role banks play in financial crises — research that's shaped the global financial system.

Transcript

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0:00.0

NPR.

0:11.6

When the economic snow bell gets announced, we hear the names of some very worthy economists,

0:17.6

but we have to admit it, these are not people that the average person on the street is going

0:21.1

to get excited about, apart from maybe us, of course, at the indicator.

0:25.5

These are academics who work on contract theory or the best way to run an auction.

0:30.8

These are typically not controversial public figures.

0:34.4

In memory of Alfred Nobel.

0:36.8

But this year was a little different.

0:39.0

To Ben Benanke.

0:41.6

So along with Douglas Diamond and Philip Diffig, Ben Benanke won this year's prize in economics.

0:47.5

Ben Benanke, of course, is the former chair of the US Federal Reserve.

0:52.2

And he was the captain steering the ship that was the US economy through the big financial

0:57.3

crisis of 2008 and 2009.

1:00.7

The bank bailouts that he led were controversial on the left.

1:09.1

And on the right.

1:10.1

We're being played for the sucker.

1:11.7

And so we weren't the only ones scratching our heads when we first heard that a prominent

1:16.8

policymaker had won the prize.

1:19.7

And Kutner is an economist at Williams College.

1:22.4

My initial reaction, like up to the first 30 seconds, was like, oh, that's surprising.

1:26.8

I would not have occurred to me.

1:28.3

But then, you know, thinking about it for, you know, five or ten minutes afterwards

...

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