Professor Douglas Diamond Awarded Nobel Prize in Economics

From: Paul Alivisatos, President
Subject: Professor Douglas Diamond Awarded Nobel Prize in Economics
Date: October 10, 2022

It is my great pleasure to share that Douglas W. Diamond, the Merton H. Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business, was awarded the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel this morning. For his seminal research on the role banks play in shaping our economy, particularly during financial crises, he was recognized along with his collaborator Philip Dybvig of Washington University in St. Louis as well as Ben Bernanke of the Brookings Institution.

The Royal Swedish Academy of Sciences honored the trio for their work toward improving “how society deals with financial crises,” celebrating that their “analyses have been of great practical importance in regulating financial markets.” The impact of his groundbreaking research has been influential for regulators, policymakers, and academics in helping banks avert collapse in the face of financial crises. Citing the Diamond-Dybvig model first explored in “Bank Runs, Deposit Insurance, and Liquidity,” the Academy credited Professor Diamond for his research illuminating the critical dynamics underpinning the relationship between banking systems and borrowers.

Please join me in congratulating Professor Diamond for his extraordinary achievement. It is a richly deserved recognition of the impact of his field-defining contributions to economics.