The Nobel Memorial Prize in Economics Sciences, also known as the Nobel Prize in Economics is the prize in economics sciences awarded by the Royal Swedish Academy of Sciences ,Stockholm, Sweden. In 1968, Sveringes Riksbank (Sweden’s Central Bank) established the prize in Economics Sciences in Memory of Alfred of Alfred Nobel, founded of the Nobel Prize. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded 54 times to 92 laureates between 1969 and 2022.

1. National University
On-Campus Advanced MBA Program
8th Batch (2nd Semester)
Session:2021-22

2. WELCOME TO MY PRESENTATION
Financial Derivatives and Risk Management (621011)
Topic: Overview of Noble Prize in Economics in 2022.
Submitted To:
Md. Saiful Islam
Assistant Professor
Department of Finance and Banking
Business Studies Group
National University
Presented By:
Emran Hossen
Advanced MBA (8th Batch)
Department of Finance & Banking
Registration No: 21824200017
Season: 2021-2022

3. History of Nobel Prize
• Alfred Nobel was a Swedish
chemist, engineer and inventor best
known for the invention of
dynamite. He died in 1896. In his
will, he bequeathed "all his
possible wealth" to establish six
prizes that became known as the
"Nobel Prizes".
• The first Nobel Prize was awarded
in 1901.

4. Nobel Prizes are awarded fields
Nobel Prizes
Medicine
Literature
Peace
Chemistry
Physics
Economics
Sciences

5. History of Economic Sciences
• In 1968, Sveringes Riksbank (Sweden’s Central Bank)
established the prize in Economics Sciences in Memory
of Alfred of Alfred Nobel, founded of the Nobel Prize.
• The first prize in economic sciences was awarded in 1969.
• The Sveriges Riksbank Prize in Economic Sciences in
Memory of Alfred Nobel has been awarded 54 times to 92
laureates between 1969 and 2022.

6. To be Continued
• The Nobel Memorial Prize in Economics Sciences,
also known as the Nobel Prize in Economics is the
prize in economics sciences awarded by the Royal
Swedish Academy of Sciences ,Stockholm, Sweden.
• It is officially known as the Sveringes Riksbank Prize
in Economic Sciences in Memory of Alfred Nobel.

7. Recipients of the Prize

8. Their Contribution
• Their research has
significantly improved
our understanding of the
role of banks in the
economy,particularly
during financial crises.
• An Important findings
in their research is why
avoiding bank collapses
is vital.

9. Ben Bernanke’s Contribution
• Ben Bernanke’s key Contribution were his research on the role of bank
crises in the Great Depression of the 1930s and his response to the
2007-2008 financial crisis as head of the US Federal Reserve.
• Until Bernanke’s 1983 research paper , bank failures were seen as a
“Consequence” of the financial Crisis, But In 1983 paper proved it
was exactly the opposite that bank failures were the “cause” of the
financial crisis.
• According's to the Bernanke , Bank runs was the key reason why a
fairly normal recession spiraled into the greatest economic crisis in
modern history in 1930s.

10. Diamond-Dybvig Model
• In 1983 Douglas Diamond and Philip Dybvig contribution to the
developed of their Diamond –Dybvig model of banks runs.
• It is an Influential model of bank runs and related financial crisis.
• A bank occurs when many clients withdraw their money from a
bank , because they believe the bank may cease to function in the
near future.
• The model shows how banks mix of illiquid assets (such as
business or mortgage loans) and liquid liabilities ( deposits
which may be withdrawn at any time )may give to self –
fulfilling panics among depositors.

11. Solution of the Problem
• Solution: The model argues that a better way of
preventing bank runs is deposit insurance backed by
the government or Central Bank. Such insurance pays
depositors all or part of their losses in the case of a
bank run.--- If depositors know that they will get
their money back even in case of a bank run , they
have no reason to participate in a bank run.

12. Thank You