Darrell Duffie

Senior Fellow
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Biography: 

Darrell Duffie is the Dean Witter Distinguished Professor of Finance at Stanford University's Graduate School of Business, professor (by courtesy) at the Department of Economics, and Senior Fellow (by courtesy) at the Hoover Institution.

Duffie is a fellow of the Econometric Society, a research fellow of the National Bureau of Economic Research, and a fellow of the American Academy of Arts and Sciences. He was the 2009 president of the American Finance Association. From October 2008 to April 2018 Duffie was a member of the board of directors of Moody’s Corporation. From 2013 to 2017 he chaired the Financial Stability Board’s Market Participants Group on Reference Rate Reform.

Duffie’s recent work focuses on the design and regulation of capital markets. His research is published in Econometrica, Journal of Political Economy, and Journal of Finance, among other journals. His most recent books are How Big Banks Fail: And What to Do about It (Princeton University Press, 2010), Measuring Corporate Default Risk (Oxford University Press, 2011), and Dark Markets: Asset Pricing and Information Trasmission in Over-the-Counter Markets (Princeton University Press, 2012).

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Recent Commentary

Interviews

Darrell Duffie: Facebook Announces Plans For Libra, Its Own Cryptocurrency

interview with Darrell Duffievia WESM 91.3 FM
Tuesday, June 18, 2019

Hoover Institution fellow Darrell Duffie discusses Libra, Facebook's new crypto-currency.

Featured

Cyber Runs: How A Cyber Attack Could Affect U.S. Financial Institutions

by Darrell Duffie, Joshua Youngervia Brookings Institution
Tuesday, June 18, 2019

Cyber risks to financial stability have received significant attention from policy makers. These risks are worsened by the increasing diversity of perpetrators—including state and non-state actors, cyber terrorists, and “hacktivists”—who are not necessarily motivated by financial gain.

Analysis and Commentary

Digital Currencies And Fast Payment Systems

by Darrell Duffievia Graduate School of Business, Stanford University
Saturday, June 1, 2019

I examine monetary policy implications and business strategy concerns related to the introduction of digital currencies and faster payment systems. Key issues include financial inclusion, payment system efficiency, control by central banks of monetary policy transmission, privacy and anti-monetary laundering, and competition for banking services.

Interviews

Darrell Duffie: How Is Silicon Valley Changing Wall Street?

interview with Darrell Duffievia Stanford University School of Engineering
Tuesday, April 2, 2019

Hoover Institution fellow Darrell Duffie discusses the implications of emerging technologies that are enabling a new era of high-speed, next-generation finance, ranging from the proliferation of digital payment systems to the dizzying speeds associated with our trading systems, where competitive advantages play out over nanoseconds.

In the News

Can The US Print Its Way Out Of A Deficit?

quoting Darrell Duffievia Chicago Booth Review
Wednesday, March 20, 2019

When governments collect less money through taxes than they spend, they run deficits. But the US government borrows in the same currency it issues, so can’t it use its printing power to help balance its budget and avoid a deficit

In the News

UK Examines Compression Auctions For Libor Transition

quoting Darrell Duffievia Markets Media
Wednesday, February 20, 2019
The Bank of England’s working group on the transition from Libor to a new risk-free reference is reviewing the use of compression auctions to decrease risk during the changeover.
In the News

Powell Faces Early Reckoning On Fed's $4-Trillion Question

quoting Darrell Duffievia Reuters
Monday, January 28, 2019

Federal Reserve Chairman Jerome Powell has a problem: how to explain that the Fed may soon begin to taper its ongoing asset-shedding operation without looking like he’s hunkering down for a coming recession, or caving to U.S. President Donald Trump.

Analysis and Commentary

An Overview Of Value At Risk

by Darrell Duffie, Jun Panvia The Journal of Derivatives
Friday, January 11, 2019

This article gives a broad and accessible overview of models of value at risk (WR), a popular measure of the market risk of a financial firm’s “book,” the list of positions in various instruments that expose the firm to financial risk. Roughly speaking, the value at risk of a portfolio is the loss in market value over a given time period, such as one day or two weeks, that is exceeded with a small probability, such as 1%.

Papers And Presentations

Lessons From The Crisis

by Darrell Duffievia Revisiting the 2008 Financial Crisis
Friday, December 7, 2018

In the years leading up to the financial crisis that began in 2007, the core of the financial system was vulnerable to major shocks emanating from any of a variety of sources. This presentation reviews the lessons from the crisis.

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