Acceptance speech by Mark Gertler, winner of the 2021 Frontiers of Knowledge Award in Economics, Finance and Management, who was honored alongside Ben S. Bernanke, Nobuhiro Kiyotaki and John Moore for their contributions to understanding how financial market imperfections can amplify economic fluctuations and trigger deep recessions. His research, particularly the development of the financial accelerator model with Bernanke, has helped explain how deteriorating corporate balance sheets and credit constraints can deepen economic crises.
Gertler recalls the beginning of his collaboration with Ben Bernanke and how their study of the Great Depression led them to investigate the relationship between the financial system and the real economy. He explains how the financial accelerator works and why credit constraints need to be incorporated into macroeconomic models. He also examines th
Acceptance speech by Mark Gertler, winner of the 2021 Frontiers of Knowledge Award in Economics, Finance and Management, who was honored alongside Ben S. Bernanke, Nobuhiro Kiyotaki and John Moore for their contributions to understanding how financial market imperfections can amplify economic fluctuations and trigger deep recessions. His research, particularly the development of the financial accelerator model with Bernanke, has helped explain how deteriorating corporate balance sheets and credit constraints can deepen economic crises.
Gertler recalls the beginning of his collaboration with Ben Bernanke and how their study of the Great Depression led them to investigate the relationship between the financial system and the real economy. He explains how the financial accelerator works and why credit constraints need to be incorporated into macroeconomic models. He also examines the role of banks and non-bank financial institutions in the 2008 financial crisis and highlights how their research has contributed to the development of unconventional monetary policies, such as quantitative easing, to stabilize financial markets.
