2022 Nobel Prize for Economics

• The 2022 Nobel Prize for Economics recognized the works that have significantly improved the world’s understanding of the role of banks in the economy, especially during the times of financial crises.
• The research by Ben Bernanke, Douglas Diamond and Philip Dybvig found why is it important to prevent the collapse of banks.
• A research by Dybvig and Diamond provided recommendations to prevent the collapse of the banks.
• Banks are involved in the combination of activities of offering long-term loans to borrowers and accepting deposits and allowing their access to concerned clients.
• The combination of these activities are making banks vulnerable to rumours of their imminent collapse, leading to rapid withdrawal from savings accounts and the ultimate collapse of the banks.
• Dybvig and Diamond recommended that this worst-case scenario can be prevented if the government provides deposit insurance and acts as a last resort lender to the banks.
• Diamond’s research showed how the banks can assess borrowers’ credit worthiness and ensure that the loans are used for worthy investments.
• Ben Bernanke analysed the Great Depression that happened in the 1930s. His research showed how the banks played a major role in exacerbating and prolonging the Great Depression – the worst economic crisis in the modern history.
• During the Great Depression, when the banks collapsed, valuable information about borrowers was lost and its recreation was very difficult.
• This hindered the society’s ability to channel the savings towards productive investments and address the economic crisis.
• The insights by Dybvig, Diamond and Bernanke helped improve the world’s ability to avoid both serious economic crisis and expensive bailouts.
• Their research in the 1980s has helped regulate the financial markets and improve the response to the financial crises.
• Their research helped policymakers stop COVID-19 pandemic from causing new depressions that may have worsened the economic situations across the world.

NASA’s Dragonfly rotorcraft

• Dragonfly rotorcraft is scheduled to be launched in 2027 and reach the Selk Crater region on Titan in the year 2034.
• The spacecraft, weighing less than 1,000 pounds, will look similar to a military transport helicopter.
• It will operate like a drone to understand the composition of Titan and conduct research to understand the origin of life on Earth.
• This would be the first aircraft on the Saturn’s moon and the first-ever fully controlled atmospheric flight on any moon.
• It will be the first flying machine targeting a celestial body in the outer solar system.
• Titan is the target of NASA’s Dragonfly rotorcraft since it is an ideal destination to research prebiological chemistry, astrobiology and the potential habitability of an extra-terrestrial world.
• Using all the radar images from Cassini spacecraft for over 13 years, scientists have successfully characterized Selk Crater region – the future destination of the Dragonfly rotorcraft.
• Researchers used angled shadows and radar reflectivity to accurately determine the surface’s properties. They were able to map 6 terrains in the site, which helped them measure the rim height of the Selk Crater.
• This will enable the smooth landing of the NASA rotorcraft and help in its accurate exploration of Titan.
• Dragonfly is set to land on an equatorial, dry region of the Saturn’s moon, which has frigid and thick atmosphere having hydrocarbon.
• While liquid methane rain frequently occurs in Titan, it is more like a desert seen on the Earth, with the presence of dunes, small mountains and an impact crater.
• Using the data obtained from the Cassini spacecraft, scientists were able to analyse less than 10 per cent of Titan’s surface. This means that there is a possibility of the presence of small rivers and landscapes that remain unnoticed.

World Green City Award 2022

• Hyderabad has beaten the cities like Paris, Bogota, Mexico City, Montreal and Fortaleza to receive World Green City Award 2022 – the best across all six categories.
• Hyderabad received the award at the International Association of Horticulture Producers (AIPH) 2022.
• The announcement of the winners under six categories and the grand winner was made during the special gala dinner at the IUCN Leaders Forum held in Jeju, South Korea.
• The six categories of award are Living Green for Biodiversity, Living Green for Climate Change, Living Green for Health and Wellbeing, Living Green for Water, Living Green for Social Cohesion and Living Green for Economic Recovery and Inclusive Growth
• Hyderabad won “Living Green for Economic Recovery and Inclusive Growth” during the AIPH event.
• “Living Green for Economic Recovery and Inclusive Growth” category focuses on creating systems and solutions that allow all of the city’s residents overcome economic distress and grow.
• In this category, the greening of the Outer Ring Road was submitted for Hyderabad’s nomination.
• The city was recognized as the global leader in nature-oriented approaches to city design, form and function.

International Current Affairs October 2nd Week 2022