Douglas W. Diamond
Merton H. Miller Distinguished Service Professor of Finance
Two Contracts That Are Central to the Financial System
A Nobel winner explains his groundbreaking research.
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Biography
Douglas W. Diamond is the 2022 recipient of the Nobel Memorial Prize in Economic Sciences for his groundbreaking research on banks and financial crises. He specializes in the study of financial intermediaries, financial crises, and liquidity. Diamond is the Merton H. Miller Distinguished Service Professor of Finance at the University of Chicago’s Booth School of Business. He has been on the faculty since 1979. Diamond is a research associate of the National Bureau of Economic Research. He is a member of the National Academy of Sciences, is a fellow of the Econometric Society, the American Academy of Arts and Sciences, and the American Finance Association and was president of the American Finance Association and the Western Finance Association. Diamond received the Onassis Prize in Finance in 2018, the CME Group- Mathematical Sciences Research Institute Prize in Innovative Quantitative Applications in 2016 and the Morgan Stanley-American Finance Association Award for Excellence in Finance in 2012.
He has taught at Yale and was a visiting professor at the MIT Sloan School of Management, the Hong Kong University of Science and Technology as well as the University of Bonn. Diamond earned a bachelor's degree in economics from Brown University in 1975. He earned master's degrees in 1976 and 1977 and a PhD in 1980 in economics from Yale University.
Selected Publications
With Yunzhi Hu and Raghuram G. Rajan, "Liquidity, Pledgeability, and the Nature of Lending," Journal of Financial Economics, 143(3): pp. 1275-1294 (March 2022).
With Yunzhi Hu and Raghuram Rajan, “Pledgeability, Industry Liquidity, and Financing Cycles,” The Journal of Finance (February 2020).
With Raghuram Rajan, “Fear of fire sales, illiquidity seeking, and credit freezes,” The Quarterly Journal of Economics (May 2011).
With Raghuram Rajan, "Liquidity Risk, Liquidity Creation and Financial Fragility: A Theory of Banking," Journal of Political Economy (April 2001).
"Monitoring and Reputation: The Choice Between Bank Loans and Directly Placed Debt," Journal of Political Economy (August 1991).
"Financial Intermediation and Delegated Monitoring," Review of Economic Studies (July 1984).
With Philip Dybvig, "Bank Runs, Deposit Insurance, and Liquidity," Journal of Political Economy (June 1983).
For a listing of research publications, please visit the university library listing page.
2023 - 2024 Course Schedule
Get Insights from Douglas W. Diamond in Chicago Booth Review
Capitalisn’t: Silicon Valley Bank—The End of Banking As We Know It?
Nobel laureate Douglas W. Diamond and former Boston Fed president Eric Rosengren visit the Capitalisn’t podcast to discuss the collapse of Silicon Valley Bank.
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What the Latest Nobel Winners Taught Us
Their insights changed the modern understanding of banks.
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