Douglas Diamond facts for kids
Quick facts for kids
Douglas Diamond
|
|
|---|---|
Diamond at the White House in 2022
|
|
| Born | October 25, 1953 |
| Education | Brown University (BA) Yale University (MA, MPhil, PhD) |
| Known for | Diamond–Dybvig model |
| Children | Rebecca Diamond |
| Awards | Nobel Memorial Prize in Economic Sciences (2022) |
| Scientific career | |
| Institutions | University of Chicago |
| Thesis | Essays on Information and Financial Intermediation (1980) |
| Doctoral advisor | Stephen A. Ross |
Douglas Warren Diamond, born on October 25, 1953, is an American economist. He is a well-known professor of finance at the University of Chicago Booth School of Business. He has taught there since 1979. Mr. Diamond studies how banks and other financial groups work. He also looks at how to handle big money problems, called financial crises, and how easily money can be moved around (this is called liquidity). He used to be the president of important finance groups like the American Finance Association.
In October 2022, Mr. Diamond won the Nobel Memorial Prize in Economic Sciences. He shared this big award with Ben Bernanke and Philip H. Dybvig. They won for their important research on banks and how to handle financial crises.
Mr. Diamond is famous for his work on financial crises and bank runs. A bank run happens when many people try to take all their money out of a bank at once. His most important work includes the Diamond–Dybvig model from 1983. He also created a model in 1984 about "delegated monitoring." This model explains how banks can help keep an eye on businesses that borrow money. In 2016, he received the CME Group-MSRI Prize for his new ideas in using math for money problems.
Contents
Early Life and Education
Douglas Warren Diamond was born on October 25, 1953. He grew up in the Hyde Park area of Chicago. His mother raised him.
When he was younger, Mr. Diamond first wanted to study molecular biology. But when he went to Brown University, he changed his mind. He decided to study economics after taking a class about a book called A Monetary History of the United States. He graduated from Brown in 1975 with a degree in economics.
He then went to Yale University. He earned two master's degrees there. In 1980, he received his PhD in economics from Yale. At Yale, both Mr. Diamond and his future Nobel co-winner, Philip H. Dybvig, had the same teacher, Stephen A. Ross. Mr. Diamond said they often talked while waiting to see their teacher.
A part of Mr. Diamond's 1980 PhD paper was later published in 1984. It was called "Financial Intermediation and Delegated Monitoring." This paper introduced the idea of "delegated monitoring." It showed how banks can help solve problems when people lend money. Experts say this paper was the first to truly explain how financial groups work. It has become a very important paper in the study of finance.
Career Highlights
Since 1979, Mr. Diamond has taught at the University of Chicago Booth School of Business. He has been a special professor there since 2000. Before that, he held another important teaching position. From 2010 to 2014, he led a research center at the University of Chicago.
Mr. Diamond has also been a visiting scholar at other universities. These include the University of Bonn in Germany and the Bank of Japan in Japan. He has also taught at the Hong Kong University of Science and Technology and MIT Sloan School of Management. He also taught at the Yale School of Management.
Winning the Nobel Prize
In the early 2010s, people often thought Mr. Diamond might win the Nobel Memorial Prize in Economic Sciences. In 2011, a group called Thomson Reuters listed him as a top candidate. They looked at how often his research was used by others. He was again named as a possible winner in 2013 by several experts and newspapers.
On October 10, 2022, Mr. Diamond received the Nobel Memorial Prize in Economic Sciences. He shared it with his long-time friend Philip H. Dybvig. He also shared it with Ben Bernanke, who used to lead the Federal Reserve. Much of the work they won the prize for was done by Mr. Diamond and Mr. Dybvig in the early 1980s.
Personal Life
Mr. Diamond married Elizabeth Cammack Diamond in 1982. They have two children together. One of their children, Rebecca Diamond, is also an economist.
His father, Leon Diamond, was a psychiatrist. His mother, Margaret Gunkel Seehafer, was a social worker and a professor.
Honors and Awards
Mr. Diamond has received many honors and awards for his work.
- Fellow, Econometric Society (since 1990)
- Member, American Academy of Arts and Sciences (elected 2001)
- Fellow, American Finance Association (selected 2004)
- Economic Theory Fellow, Society for the Advancement of Economic Theory (2016)
- Member, National Academy of Sciences (elected 2017)
Major Awards
- Morgan Stanley-American Finance Association Award for Excellence in Finance, 2012
- Doctor Honoris Causa, University of Zurich, 2013
- CME Group-MSRI Prize in Innovative Quantitative Applications, 2016
- Wilbur Cross Medal, 2017
- Onassis Prize in Finance, 2018
- Nobel Memorial Prize in Economic Sciences, 2022
- Doctor of Humane Letters from Brown University, 2023
See also
In Spanish: Douglas Diamond para niños
- List of Jewish Nobel laureates
