Diamond’s presentation focuses on bank runs and problems of short-term debt and how they can inform our understanding of the financial crisis—indeed, all financial crises—and whether the measures taken to design more fail-safe financial architecture post-crisis were sufficient. As he states, “Private financial crises are everywhere and always due to problems of short-term debt.” He focuses his analysis on runs on money market funds and the role of excess liquidity in shoring up the system.

A session from the 2008 Financial Crisis: A Ten-Year Review conference held on 8-9 November 2018 in New York.