The FMG would like to congratulate John Moore, of LSE Economics and the University of Edinburgh, on receiving the BBVA Foundation Frontiers of Knowledge Award (13th edition) for establishing the nature of the linkage between the financial sector and the real economy and how it operates to amplify crises.
John Moore, along with Nobuhiro Kiyotaki (Princeton University), who was also awarded the accolade, demonstrated the dual role of assets used by firms as collateral against loan defaults, namely as productive asset and collateral wealth. The award also recognised Ben Bernanke (The Brookings Institution, Washington DC) and Mark Gertler (University of New York).
According to the press release, the work of the four economists has sparked “an enormous literature that grew particularly rapidly after the great financial crises of 2008 made the relevance of their ideas clear”. The committee underscored that in today’s Covid economy, the awardees’ contributions have a crucial role to play, as they did previously in the Great Recession and the euro zone sovereign debt crisis.
