William Diamond

William Diamond, Tim Landvoigt, German Sanchez Sanchez, Printing Away the Mortgages: Fiscal Inflation and the Post-Covid Housing Boom.

William Diamond Personal Website.

William Diamond, current CV.

William Diamond and Peter Van Tassel, Risk-Free Rates and Convenience Yields Around the World.

William Diamond (2020), Safety Transformation and the Structure of the Financial System, Journal of Finance.

William Diamond, Yiming Ma, Zhengyang Jiang, The Reserve Supply Channel of Unconventional Monetary Policy (revise and resubmit, Journal of Financial Economics).

William Diamond and Tim Landvoigt, Credit Cycles with Market Based Household Leverage (Accepted, Journal of Financial Economics).

Abstract: We develop a model in which mortgage leverage available to households depends on the risk bearing capacity of financial intermediaries. Our model features a novel transmission mechanism from Wall Street to Main Street, as borrower households choose lower leverage and consumption when intermediaries are distressed. The model has financially constrained young and unconstrained middle-aged households in overlapping generations. Young households choose higher leverage and riskier mortgages than the middle-aged, and their consumption is particularly sensitive to credit supply. Relative to a standard model with exogenous credit constraints, the macroeconomic importance of intermediary net worth is magnified through its effects on household leverage, house prices, and consumption demand. The model quantitatively demonstrates how recessions with housing crises differ from those driven only by productivity, and how a growing demand for safe assets replicates many features of the 2000s credit boom and increases the severity of future financial crises.

Jules van Binsbergen, William Diamond, Marco Grotteria (2018), Risk Free Interest Rates (Journal of Financial Economics, Jan 2022), Journal of Financial Economics.

William Diamond and Nikhil Agarwal (2017), Latent Indices in Assortative Matching Models, Quantitative Economics (best paper award in QE for 2017).