Diemo Dietrich is Professor of Economics, specializing in Money and Currency, at the University of Greifswald's Faculty of Economics and Business Administration since October 2022. His prior positions include Newcastle University (UK) and the Halle Institute for Economic Research (IWH). His work focuses on financial systems – particularly banking and bank regulation, financial innovation, and financial stability – as well as monetary policy and corporate finance. In the paper he will be presenting, Dietrich and co-authors use a Diamond–Dybvig framework with an interbank asset market to examine how regional liquidity shocks affect asset prices and bank stability. While theory predicts a stable equilibrium free of bank failures, their experiment reveals that bankers over-allocate to cash, driving inflated, volatile asset prices and frequent bank failures – an outcome they attribute to strategic uncertainty arising from equilibrium indeterminacy.
Montag, 16.11.2026