Becker Friedman Institute
for Research in Economics
The University of Chicago

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Liquidity Regulation and the Risk of Bank Runs: Why the Last Taxi Must Never Leave the Train Station - video

Liquidity Regulation and the Risk of Runs

In this Becker Brown Bag talk held Nov. 30, 2016, Douglas Diamond, Merton H. Miller Distinguished Service Professor of Finance at Chicago Booth, explains why incentivizing banks to hold extra liquid assets could prevent bank runs, and shows how new liquidity regulations can be improved.