Douglas W. Diamond – Wikipedia

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Douglas Warren Diamond (* 25. October [first] 1953) is an American economist. He is Merton H. Miller Distinguished Service Professor of Finance At the University of Chicago. His explanation of the existence of banks is a standard work in his field. In 2022, together with Ben Bernanke and Philip Dybvig, he was awarded the Alfred Nobel Memorial Prize for Economics.

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Diamond studied economics at Brown University (A.B. 1975) in Providence, Rhode Island and Yale University (M.A. 1976 and M. Phil. 1977) in New Haven, Connecticut. Then he became a lecturer. In 1980 he acquired a Ph.D.

Diamond came to the Booth School of Business at the University of Chicago in 1979. He became an assistant (1980 to 1983) and Associate Professor (1983 to 1986). In 1987/88 he was a professor of finance at the Yale School of Organization and Management . Afterwards he was a professor of finance and from 1993 to 2000 Theodore O. Yntema Professor of Finance in Chicago. In 1997 he was a visiting professor for Finance at the Hong Kong University of Science and Technology. He was also a guest lecturer at the University of Bonn (1993) and at the Bank of Japan (1999). He has been since 2000 Merton H. Miller Distinguished Service Professor of Finance and since 2010 co-director of the Fama-Miller Center for Research in Finance . In 1999 he also became a research assistant at the National Bureau of Economic Research. He supervised numerous Ph.D. Students and a. Efraim Benmelech, Catherine M. Schrand and Kevin Francis Rock.

In 2001/02 he was President of the Western Finance Association (in 2006 he was Distinguished Speaker) and in 2003 of the American Finance Association (previously in the Board of Directors). From 1988 to 2001 he was editor of the Journal of Business . From 1988 to 1996 or from 2000 to 2003 he was co -editor of the Journal of Finance and from 1995 to 2001 of the Journal of Banking and Finance . From 1989 to 1993 he also belonged to the editorial board of the Journal of Financial Intermediation and from 1993 to 1997 was a foreign editor of the Review of Economic Studies . In 2005 he presented the Princeton Lectures in Finance at Bendheim Center for Finance. In 1990 and 2008 he was a scientific advisor to the Federal Reserve Board. He had further commitments in the boards in Richmond, New York and Chicago. He is currently co -editor of the Journal of Financial Services Research (since 1993) and member of the Board of Directors of the Center for Research in Security Prices.

His focus is on Financial intermediaries, the financial crisis, liquidity, bank regulation, deposit protection and financial debt. He was with scholarships by u. the National Science Foundation and the Garn Institute of Finance promoted. With Philip Dybvig, he developed the Diamond Dybvig model for the description of banks’ liquidity bottlenecks.

In October 2022, Diamond, together with Ben Bernanke and Philip Dybvig, was awarded the Alfred Nobel Memorial Prize for Economics, generally also known as the “Nobel Prize”. His two American colleagues and he received the award for their research on banks and financial crises in the early 1980s. [2] Douglas Diamond received the award with Philip Dybvig to clarify the role of banks in business and how this role makes it vulnerable in financial crises. According to Diamond and Dybvig, banks provide the optimal solution for a basic task of banks to redirect investor funds in investments, with two basic conflicts: Investors sometimes want to pay their money and borrower to long -term security. Banks form a cushion by taking money from many investors, but this also makes them vulnerable to rumors of an upcoming collapse and an upsaw of investors to their money, which can lead to a self -fulfilling prophecy and collapse of the bank. This in turn can be prevented by securing the banks by the state. Diamond emphasized a second aspect, the better assessment of creditworthiness and quality of investments based on her experience with many borrowers.

Diamond is married and has two children.

  • Mit Philip H. Dybvig: Bank Runs, Deposit Insurance, and Liquidity , in: Journal of Political Economy , 1983, vol. 91, No. 3, S. 401–419.
  • Financial Intermediation and Delegated Monitoring , in: Review of Economic Studies , 1984, vol. 51, No. 3, S. 393–414.
  • Monitoring and Reputation: The Choice Between Bank Loans and Directly Placed Debt , in: Journal of Political Economy , 1991, vol. 99, No. 4, S. 689–721.
  • mit raghuram rajan: Liquidity Risk, Liquidity Creation and Financial Fragility: A Theory of Banking , in: Journal of Political Economy , 2001, vol. 109, No. 2, S. 287–327.
  • Banks and liquidity creation: a simple exposition of the Diamond-Dybvig model , Fed. Res. Bank Richmond Econ. Q., Band 93, 2007, S. 189–200. pdf, web archive
  • mit ranghuram rajan: Fear of fire sales, illiquidity seeking, and credit freezes , in: Quarterly Journal of Economics , 2011, vol. 126, No. 2, S. 557–591.
  1. ↑ https://www.nobelprize.org/prizes/economic-sciences/2022/diamond/facts/
  2. ↑ Press release: The Prize in Economic Sciences 2022 . In: Nobelprize.org, October 10, 2022 (accessed on October 10, 2022).
  3. ↑ UZH gives an honorary doctor to cultural historian Peter Burke and nine other personalities ( Memento from May 4, 2013 in Internet Archive ). University of Zurich, April 27, 2013.
  4. ↑ Book of Members. (PDF) Accessed on July 23, 2016 (English).

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