Diamond-Dybvig 36 Conference

Diamond and Dybvig (1983)* has had a great influence on policy, practice, and many areas of economic research.  Initially, the paper's main contribution was viewed as providing a rational economic justification of pre-deposit-insurance banking panics such as those in the Great Depression.  It also helped to explain why deposit insurance mostly put an end to traditional bank runs.  Furthermore, although multiple equilibrium had played an important role in game theory, multiple equilibrium was largely viewed as a defect in an economic model, and Diamond and Dybvig helped to change the profession's view on this issue.  More recently, the model has become an important workhorse model for studying banking and liquidity, and a framework for discussing related policy issues.  The Diamond-Dybvig model is the go-to model for understanding run-like phenomena in many markets during the recent financial crisis.  The model's simplicity has made it easy to extend to study a variety of issues in macroeconomics, economic theory, and financial markets.  

Mark Taylor, Dean of the Olin Business School at Washington University in St. Louis, has suggested that we should hold a conference celebrating the 36th anniversary of Diamond-Dybvig, and to that end has provided funding for this conference.  

The conference is hosted by the Olin Business School and will be held in Knight Hall on the Washington University in St. Louis campus on March 29 and 30, 2019.  

To view a tentative schedule, please see the Schedule page of this site.

Keynote Speakers:

Nobuhiro Kiyotaki, Princeton University.  Nobuhiro Kiyotaki is the Harold H. Helm '20 Professor of Economics and Banking at Princeton University. He received his Ph.D. from Harvard University in 1985. He has published widely in macroeconomics and monetary economics, including "Monopolistic Competition and the Effects of Aggregate Demand," with Olivier Blanchard in 1987, "On Money as a Medium of Exchange," with Randall Wright in 1989, "Credit Cycles," with John Moore in 1997, and “Banking, Liquidity and Bank Runs in an Infinite Horizon Economy,” with Mark Gertler in 2015. Kiyotaki also worked at the University of Wisconsin-Madison, the University of Minnesota and the London School of Economics and Political Science before Princeton. Among professional honors, Kiyotaki received the 1999 EEA Yrjo Jahnsson Award and the 2010 Stephen A. Ross Prize in Financial Economics, together with John Moore, and also the 2014 Banque de FranceTSE Senior Prize in Monetary Economics and Finance. 

Paul Tucker, The Harvard Kennedy School and Chair/Systemic Risk Council.  Sir Paul Tucker is chair of the Systemic Risk Council, a fellow at Harvard Kennedy School, and author of Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State (Princeton University Press, 2018). His other activities include being a director at Swiss Re, President of the UK’s National Institute for Economic and Social Research, a senior fellow at the Harvard Center for European Studies, a member of the Advisory Board of the Yale Program on Financial Stability, and a Governor of the Ditchley Foundation. Prior to that, he was Deputy Governor at the Bank of England, sitting on its monetary policy, financial stability, and prudential policy committees, after leading the reconstruction of the BofE’s functions. During his more than 30 years there, he headed the monetary strategy team, and was in charge of the balance sheet before and during the 2007/09 crisis. Internationally, he was a member of the G20 Financial Stability Board, chairing its group on resolving too-big-to-fail groups; and a director of the Bank for International Settlements, where he advised on LOLR policy for clearing houses, and chaired the Committee on Payment and Settlement Systems.


Conference Organizers

Douglas W. Diamond, Merton H. Miller Distinguished Service Professor of Finance, The Booth School of Business, University of Chicago

Philip H. Dybvig, Boatmen's Bancshares Professor of Banking and Finance, Olin Business School, Washington University in St. Louis

To register:

The conference is open to the public and general registration can be found on this website.  Program participants and special guests of Dean Mark Taylor should register by contacting Sandy Vaughn at svaughn@wustl.edu.  





*Diamond, Douglas W. and Philip H. Dybvig, 1983, Bank Runs, Deposit Insurance, and Liquidity, Journal of Political Economy 91, 401-419.