Douglas Diamond, Merton H. Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business, has been elected a member of the National Academy of Sciences (NAS). Membership to the National Academy of Sciences is considered one of highest honors a scientist can receive.“This election is a great honor, and I have been lucky to have the support of my colleagues at Booth,” Diamond said. “I’m glad that there remains substantial interest in the study of the financial system’s stability.”
Douglas W. Diamond, Merton H. Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business
Diamond is considered one of the fathers of modern banking theory, as his research helped draw up the way many of today’s bankers, regulators, policy makers and academics approach modern finance. His earliest research explained how the economic role of banks generated an essential link between the properties of their assets and the form of their liabilities, while his later research with Philip H. Dybvig developed the Diamond-Dybvig model, which demonstrated how banks specializing in creating liquid liabilities (deposits) to fund illiquid assets (such as business loans) may be unstable and give rise to bank runs.
No stranger to high honors and accolades, Diamond earned the Chicago Mercantile Exchange Group-MSRI Prize in Innovative Quantitative Applications in 2015 and the Morgan Stanley-American Finance Association Award for Excellence in Finance in 2012.
According to his bio, Diamond is a research associate of the National Bureau of Economic Research and a visiting scholar at the Federal Reserve Bank of Richmond. He was president of the American Finance Association and the Western Finance Association and is a fellow of the Econometric Society, the American Academy of Arts and Sciences, and the American Finance Association. Diamond has been working at Chicago Booth since 1979.