Darrell Duffie

Senior Fellow
Research Team: 

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

In the News

The US Crackdown On Stablecoins Is Targeting Tether First

quoting Darrell Duffievia Quartz
Wednesday, October 20, 2021

The US government is cracking down on stablecoins, taking its first major shot on Oct. 15 against Tether. The US Commodities Futures Trading Commission fined the popular stablecoin operator $41 million for allegedly misstating its reserves.

The Federal Reserve
Analysis and Commentary

What Quantity Of Reserves Is Sufficient?

by Darrell Duffie, Adam Copeland, Yilin (David) Yangvia Liberty Street Economics
Thursday, September 30, 2021

A concern of the Federal Reserve is how to manage its balance sheet and whether, over the long run, the balance sheet should be small or large. In this post, we highlight results from a recent paper in which we show how, even during a period of “ample” reserves, the Fed’s management of its balance sheet had material impacts on funding markets and especially the repo market. 

In the News

A Proposal To Restore Stability To The Shaken U.S. Treasury Market

featuring Darrell Duffievia Stanford Graduate School of Business
Wednesday, September 22, 2021

Darrell Duffie talks about an emerging consensus on major reforms to the world’s financial safe haven.


Reserves Were Not So Ample After All

by Adam Copeland, Darrell Duffie, Yilin (David) Yangvia Federal Reserve Bank of New York
Monday, July 12, 2021

The Federal Reserve's “balance-sheet normalization,” which reduced aggregate reserves between 2017 and September 2019, increased repo rate distortions, the severity of rate spikes, and intraday payment timing stresses, culminating with a significant disruption in Treasury repo markets in mid-September 2019. 


Darrell Duffie: Building A Stronger Financial System: Opportunities Of A Central Bank Digital Currency

with Darrell Duffievia The Committee on Banking, Housing, and Urban Affairs, United States Senate
Wednesday, June 9, 2021

Hoover Institution fellow Darrell Duffie testifies before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on "Building A Stronger Financial System: Opportunities of a Central Bank Digital Currency."

In the News

Time To Look Again At The Financial System’s Dangerous Fault Lines

quoting Darrell Duffievia Financial Times
Tuesday, January 19, 2021

[Subscription Required] Change is needed after the pandemic stretched markets to the limit in March last year.

In the News

Stanford’s Duffie Shakes Up SOFR Credit Race With AXI Index

featuring Darrell Duffievia Risk.net
Monday, August 3, 2020

[Subscription required] Academics propose new credit index that ditches Libor tenors for a single funding spread.

Analysis and Commentary

Across-The-Curve Credit Spread Indices

by Antje Berndt, Darrell Duffie, Yichao Zhuvia Darrell Duffie
Thursday, July 23, 2020

This note presents a preliminary approach to the design of an across-the-curve credit spread index (AXI). The index is a measure of the recent average cost of wholesale unsecured debt fund- ing for publicly listed U.S. bank holding companies and their commercial banking subsidiaries.

Analysis and Commentary

Still The World’s Safe Haven? Redesigning The U.S. Treasury Market After The COVID-19 Crisis

by Darrell Duffievia Brookings Institution
Monday, June 22, 2020

The market for U.S. Treasuries has long been viewed as the world’s most liquid and deepest financial market. That presumption was questioned when the COVID-19 crisis triggered heavy investor demands for trading that overwhelmed the capacity of dealers who usually serve as middlemen in this market. Over several tense days in March, yields rose sharply, calling into question the longstanding view that Treasuries are a reliable safe haven in a crisis. 

InterviewsBlank Section (Placeholder)

Darrell Duffie On Treasury Markets And The Post-COVID Path To Financial Stability

interview with Darrell Duffievia Macro Musings
Monday, June 15, 2020

Hoover Institution fellow Darrell Duffie discusses the treasury market problems that emerged in March 2020 and what can be done to avoid them in the future.