Journal Article
Bank runs, deposit insurance, and liquidity
Diamond, Douglas W.; Dybvig, Philip H. (2000-01)
This article develops a model which shows that bank deposit contracts can provide allocations superior to those of exchange markets, offering an explanation of how banks subject to runs can attract deposits. Investors face privately observed risks which lead to a demand for liquidity. Traditional demand deposit contracts which provide liquidity have multiple equilibria, one of which is a bank run. Bank runs in the model cause real economic damage, rather than simply reflecting other problems. Contracts which can prevent runs are studied, and the analysis shows that there are circumstances ...
Quarterly Review , Volume 24 , Issue Win , Pages 14-23

Journal Article
The new risk management: the good, the bad, and the ugly
Marshall, William J.; Dybvig, Philip H. (1997-11)
At one time, risk management was limited to insurance and the avoidance of lawsuits and accidents. The new risk management also includes using tools developed for pricing financial options for the management of financial risks within the firm. Trading in financial markets based on these tools can insulate companies from the risk of changes in interest rates, input prices, or currency fluctuations. In this article Philip H. Dybvig and William J. Marshall introduce the new risk management and the policy choices firms should be considering.
Review , Issue Nov , Pages 9-21

Journal Article
The new risk management: the good, the bad, and the ugly
Liang, Pierre Jinghong; Dybvig, Philip H.; Marshall, William J. (2013-07)
In a 1997 Review article, the authors described the good, the bad, and the ugly features of what they called the new risk management, which is the use of financial derivatives to hedge risk in firms. Since the article was first published, the ?new? risk management has become commonplace and indeed played a big role in the financial crisis. As a result, the original article is more relevant today than when it was first published. This updated version of the article contains the same examples and critical analysis as in the original article but includes an updated description of the accounting ...
Review , Volume 95 , Issue July , Pages 273-291

Journal Article
What is the Fed's decision problem? (conference panel discussion)
Dybvig, Philip H. (1994-03)
Review , Issue Mar , Pages 213-215

Conference Paper
What is the Fed's decision problem? (conference panel discussion)
Dybvig, Philip H. (1994-03)
Proceedings , Issue Mar , Pages 213-215