Money Talks: Panic economics
Money Talks from The Economist
The Economist
4.4 • 1.2K Ratings
🗓️ 12 October 2022
⏱️ 41 minutes
🧾️ Download transcript
Summary
This year’s Nobel prize in economics was awarded to Ben Bernanke, Philip Dybvig, and Douglas Diamond for their pioneering research into the role that banks play in financial crises. On this week’s episode, hosts Soumaya Keynes, Mike Bird and Alice Fulwood speak with Professors Dybvig and Diamond about their eponymous model of financial panics - one economics’ most cited papers - and ask whether policymakers have truly absorbed their insights.
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Transcript
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| 0:00.0 | It's every man for himself. Only those who are ruthless will succeed. Only the biggest and strongest will survive. |
| 0:09.0 | That's the law of the jungle. That's the way it's always been. |
| 0:14.0 | But the rules of business and society have changed. Innovators are now top of the food chain. |
| 0:20.0 | Power has no sex. Prejudice has no place. Strength is now measured in agility. |
| 0:28.0 | Tradition is history. The law of tomorrow. Discover what you can do with it today at Mishkond.com. |
| 0:37.0 | Mishkond Araya, its business, but it's personal. |
| 0:43.0 | Money talks from the economist is sponsored by Invest Puerto Rico. |
| 0:48.0 | More than just a Caribbean paradise, Puerto Rico is a business powerhouse. |
| 0:53.0 | This U.S. territory is a fast-growing hub for innovators. |
| 0:57.0 | Puerto Rico boasts numerous tax credits, business incentives and world-class talent that take your business to the next level. |
| 1:05.0 | Find out why at investpr.org. Gamechangers, welcome home. |
| 1:11.0 | In the late 1970s, Douglas Diamond was a PhD student at Yale, studying under Stephen A. Ross. |
| 1:28.0 | Steve was an amazing advisor and stupendous mentor. |
| 1:32.0 | Ross was known for developing theories in financial economics, covering things like arbitrage pricing and binomial options. |
| 1:40.0 | He was also known for another reason. |
| 1:43.0 | Steve used to have this policy of not making appointments, but you would have to sit outside his door waiting to see when he had some time to talk. |
| 1:51.0 | So Diamond would often find himself waiting outside Ross's door. |
| 1:55.0 | He had an assistant who was very nice and gave us cookies and things like that while we sat out there too. |
| 2:00.0 | And he'd often be snacking with a fellow student, Philip Dibvig. |
| 2:05.0 | While out there, we talked to each other quite a bit. |
| 2:08.0 | And while we were in graduate school, we sort of came up with the idea we wanted to work together on something. |
| 2:16.0 | Diamond was particularly interested in the Great Depression and why bank runs happen. Dibvig was game. |
... |
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