There will be no financial crisis in the United States, according to Nobel Prize winner Philip Dybvig

Philip Dybvig, one of the winners of the 2022 Nobel Prize in Economics, noted that a financial crisis is not expected in USAbecause the banking sector would not be going through any kind of “problems”.

The professor indicated that the world economy is currently going through a period of uncertainty as a result of the war between Russia and Ukraine, the energy crisis and the rise in international inflation. However, he specified that there would be “no indications, at least in the United States, that the banking sector is in trouble right now. I don’t expect a financial crisis.” declared to EFE.

In addition, Dybvig stated that there is a difference between other countries whose financial systems do not have the level of control compared to the nation led by Joe Biden.

“They don’t have the same level of sophistication that we have right now in USA and there are probably places that have problems, but I’m not really an expert on them,” he said.

Regulate cryptocurrencies

Among the issues that most concern him is the troubled world of cryptocurrencies, of which he assured is “a mess”. However, he stressed that right now “it’s not big enough to be a problem for the economy.”

Along these lines, he explained that the cryptocurrencies they are “a kind of security and a kind of investment” and should be regulated like other investments. Similarly, if it is a crypto bank, it should also be controlled like a common bank.

Similarly, the Nobel said that there is currently no good use case available to test whether cryptocurrency is “really useful for the economy” and that it would only represent it “for people who require anonymous payments for illegal activities.”

This anonymity in digital currencies is due to the fact that “there is no one trying to maintain their value”, as is done with the currencies of countries. “I tell my students that the only known equilibrium price for bitcoin is zero. If people think that bitcoin is worth nothing, it will be worth nothing,” added the economist.

Finally, he pointed out that in future generations “crypto can have a great role, but I think they are not yet ready for use by the public.” It should be noted that FTX, a digital platform for buying and selling cryptocurrencies, recently filed for bankruptcy, causing strong losses in value.

Who is Philip Dybvig?

Philip Dybvig was born in 1955 and was recently one of the economists awarded the 2022 Nobel Prize in Economics. Dybvig along with Douglas Diamond and Ben Bernanke, former Chairman of the United States Federal Reserve, were recognized for their research on banks and crises financial. These works contributed to the regulation, management and management of major recessions by financial institutions in various countries, mainly the United States.