BANKING AFFAIRS

Detailed explanation-1: -This year’s Laureates William Nordhaus and Paul Romer have significantly broadened the scope of economic analysis by constructing models that explain how the market economy interacts with nature and knowledge. Technological change – Romer demonstrates how knowledge can function as a driver of long-term economic growth.

Detailed explanation-2: -For his contributions to the study of endogenous growth theory, which examines how investing in knowledge and innovation-which are limitless resources-can drive economic growth, Romer was a co-recipient of the 2018 Nobel Memorial Prize in Economic Sciences.

Detailed explanation-3: -In a 2018 paper published after he was awarded the prize, Nordhaus claimed that 3°C of warming would reduce global GDP by just 2.1%, compared to what it would be in the total absence of climate change. Even a 6°C increase in global temperature, he claimed, would reduce GDP by just 8.5%.

Detailed explanation-4: -The Nobel Prize 2022 for Economics has been awarded to three US-based economists ‘for research on banks and financial crises’. All three winners will be awarded at the annual ceremony in Stockholm on December 10. Ben Bernanke, Douglas Diamond, and Philip Dybvig have won the Nobel Prize in Economics for 2022.

Detailed explanation-5: -William Dawbney Nordhaus (born May 31, 1941) is an American economist, a Sterling Professor of Economics at Yale University, best known for his work in economic modeling and climate change, and one of the 2 recipients of the 2018 Nobel Memorial Prize in Economic Sciences.