"Bankruptcy moment for Economics Nobel": Zoho CEO Sridhar Vembu's contrarian take on Ben Bernanke's win

Ben Bernanke winning this year's Economics Nobel prize is a "bankruptcy moment for central banking and the economics Nobel," Zoho co-founder and CEO Sridhar Vembu tweeted.

Vembu tweeted, "Ben Bernanke wins the economic Nobel Prize at the very moment when the global financial system is (once again) on the edge due to the misguided monetary policies he and other central bankers spearheaded."
Former US Fed chair Bernanke, along with two other American economists Douglas Diamond and Philip Dybvig, won this year's prestigious Economics Nobel for their research about bank failures and their fallouts.


Bernanke's research, which looked into the Great Depression of the 1930s, underlined the perils of bank runs. A bank run is when a large number of people simultaneously withdraw their savings as a result of panic.

His work showed that bank collapses triggered leads to economic devastation, and not the other way round.

Till his seminal research was published, economists considered bank failures a result of economic devastation, not as the cause of it.

The research of this year's winners was instrumental in showing why it is vital to avoid bank collapses, the Nobel panel noted while announcing the honours.

With their findings in the early 1980s, the laureates laid the foundations for regulating financial markets, the panel said.

Bernanke is now associated with the Brookings Institution in Washington.