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==Nobel Prize==
In 2022 Bernanke was awarded the Nobel Memorial Prize in Economic Sciences along with [[Philip H. Dybvig]] and [[Douglas Diamond]]. Their research suggested that the Great Depression was caused by a variety of factors including credit market stress and a failing gold standard.<ref>{{Cite journal |last=Bernanke |first=Ben S. |date=2023-05-01 |title=Nobel Lecture: Banking, Credit, and Economic Fluctuations |url=http://dx.doi.org/10.1257/aer.113.5.1143 |journal=American Economic Review |volume=113 |issue=5 |pages=1143–1169 |doi=10.1257/aer.113.5.1143 |issn=0002-8282}}</ref> With a rising [[External Finance Premium]] lenders and borrowers were both inclined to protect their financial health due to stressed credit markets.<ref>{{Cite journal |last=Bernanke |first=Ben S. |date=2023-05-01 |title=Nobel Lecture: Banking, Credit, and Economic Fluctuations |url=http://dx.doi.org/10.1257/aer.113.5.1143 |journal=American Economic Review |volume=113 |issue=5 |pages=1143–1169 |doi=10.1257/aer.113.5.1143 |issn=0002-8282}}</ref> Lenders began tightening credit standards and avoiding risky borrowers while borrowers withdrew their cash. These self-preservation decisions from both lenders and borrowers resulted in further stress on the credit market and stagnation in investment spending.<ref>{{Cite journal |last=Bernanke |first=Ben S. |date=2023-05-01 |title=Nobel Lecture: Banking, Credit, and Economic Fluctuations |url=http://dx.doi.org/10.1257/aer.113.5.1143 |journal=American Economic Review |volume=113 |issue=5 |pages=1143–1169 |doi=10.1257/aer.113.5.1143 |issn=0002-8282}}</ref> In addition to stressed credit markets, the failing gold standard also played a crucial role. After World War 1 most countries had their currencies tied to gold as well as fixed exchange rates, however, post-war animosity between many European nations led to non-cooperation regarding the gold standard.<ref>{{Cite journal |last=Bernanke |first=Ben S. |date=2023-05-01 |title=Nobel Lecture: Banking, Credit, and Economic Fluctuations |url=http://dx.doi.org/10.1257/aer.113.5.1143 |journal=American Economic Review |volume=113 |issue=5 |pages=1143–1169 |doi=10.1257/aer.113.5.1143 |issn=0002-8282}}</ref> Consequently, the gold standard failed in the late 1920s, bringing prices, money supply, and output down with it. Their research showed that the combination of a failing gold standard and stressed credit markets led to a catastrophic spiral in the economy.<ref>{{Cite journal |last=Bernanke |first=Ben S. |date=2023-05-01 |title=Nobel Lecture: Banking, Credit, and Economic Fluctuations |url=http://dx.doi.org/10.1257/aer.113.5.1143 |journal=American Economic Review |volume=113 |issue=5 |pages=1143–1169 |doi=10.1257/aer.113.5.1143 |issn=0002-8282}}</ref>
==Personal life==
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