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The winners for the 2022 Nobel Prize in Economics have been released, and the great economists of the past are rolling in their graves. Why?
The 2022 Nobel in Economic Science has been awarded to Ben Bernanke. Bernanke is infamous around the world for helming the US economy during the 2008 Global Financial Crisis that threatened to crash the US and European markets.
First, some history. Sir John Maynard-Keynes shook the economic world with his General theory after the Great Depression. Keynes focused on the demand side of markets, and this was revolutionary. Before him, J.B. Say's theory that the supply side of markets drove growth was the most accepted idea. Keynes helped create neoclassical economics, the most mainstream kind of economics with the likes of Alfred Marshall, Arrow, and Samuelson. Neoclassical economics provides the foundation for macroeconomics, the study of broad markets. The Federal Reserve exists because of some of the conclusions that macroeconomics comes to. Thus, Ben Bernanke is a macroeconomist.
However, not all economists subscribe to the assumptions necessary in macro. Many economists believe that manipulating interest rates in an effort to control inflation results in inaccurate prices, and mutilated prices to an economist are like a faulty heart monitor to a cardiologist.