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Diamond–Dybvig model

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The Diamond–Dybvig model is an influential model of bank runs and related financial crises. The model shows how banks' mix of illiquid assets (such as business or mortgage loans) and liquid liabilities (deposits which may be withdrawn at any time) may give rise to self-fulfilling panics among depositors. Diamond and Dybvig, along with Ben Bernanke, were the recipients of the 2022 Nobel Prize in Economics for their work on the Diamond-Dybvig model.

Diamond–Dybvig model - Wikipedia Jump to content From Wikipedia, the free encyclopedia Theoretical description of bank runs and financial crises This article includes a list of general references but lacks corresponding inline citations . Please help improve this article by introducing more precise citations. ( January 2010 ) ( Learn how and when to remove this message ) A 2007 run on Northern Rock , a British bank The Diamond–Dybvig model is an influential model of bank runs and related financial crises . The model shows how banks' mix of illiquid assets (such as business or mortgage loans) a

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