A Washington University professor's work on bank failures in the 1980s has won him the Nobel Prize in economics.
Philip Dybvig's work explained why bank runs happen, and resulted in more regulation of financial markets and laid the foundations for crisis response.
Dybvig was chosen along with his colleagues Douglas Diamond and former Federal Reserve Chair Ben Bernanke for their 1983 paper "Bank Runs, Deposit Insurance, and Liquidity."
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