Research Interests

I am an applied theorist interested in Financial Stability, Banking & Banking Regulation, Currencies, and Corporate Finance. I use ideas primarily from information economics, game theory, and dynamic macroeconomics. I have become particularly fascinated by the simple concepts of risk pooling, diversification, and arbitrage.

Appointments

since 09/2012: Newcastle University Business School, Senior Lecturer in Financial Economics.

03/2006–08/2012: IWH-Halle Institute for Economic Research, Senior Economist.

03/2002–02/2006: IWH-Halle Institute for Economic Research, Economist.

03/1997–02/2002: Institute for Theoretical Economics, U Leipzig, Research and Teaching Assistant.

Research visits and visiting positions

University of Vienna, Department of Finance, Guest Professor, 2016, 2017, 2020, 2022.

Deutsche Bundesbank, Research Centre, Visiting Researcher, 2006, 2008, 2016.

Norges Bank, Financial Stability Research Department, Visiting Researcher, 2012.

University of Illinois Urbana-Champaign, Department of Finance, Visiting Scholar, 2004, 2011.

Grants and consultancy (select)

Leverhulme (2013-15), GIZ (2010, 2012), Fritz Thyssen Foundation (2004, 2011), Stiftung Geld und Währung (2009-13).

Reviewer activity (select)

Oxford University Press, Palgrave, British Academy, J Financial Intermediation, J Corporate Finance, J Financial Stability, J Banking & Finance, J Macroeconomics, Finance Research Letters and others.

• Dietrich D, Gehrig T. Speculative and Precautionary Demand for Liquidity in Competitive Banking Markets. Centre for Economic Policy Research Discussion Paper Series 2021.
• Berry W, Dietrich D, Sollis R. Financial Stress and Forecasting UK Equity Risk Premiums. 2021.
• Dietrich D, Gehrig T. On the Instability of Private Intertemporal Liquidity Provision. Economics Letters 2021, 209, 110117.
• Dietrich D, Shin J, Tvede M. Debt Constraints and Monetary Policy. Journal of Mathematical Economics 2020, 87, 31-42.
• Dietrich D, Hauck A. Interbank borrowing and lending between financially constrained banks. Economic Theory 2020, 70(2), 347-385.
• Bucher M, Dietrich D, Hauck A. Implications of bank regulation for loan supply and bank stability: a dynamic perspective. European Journal of Finance 2019, 25(16), 1527-1550.
• Bucher M, Dietrich D, Hauck A. More stability through liquidity regulation. Deutsche Bundesbank, 2019. Available at: https://www.bundesbank.de/en/publications/research/research-brief/2019-25-stability-through-liquidity-regulation-797450.
• Bucher M, Dietrich D, Tvede M. Coordination Failures, Bank Runs and Asset Prices. Deutsche Bundesbank Discussion Paper Series 2018, (39/2018), 29.
• Dietrich D, Hauck A. Bank Capital Regulation, Loan Contracts, and Corporate Investment. Quarterly Review of Economics and Finance 2014, 54(2), 230-241.
• Bucher M, Dietrich D, Hauck A. Business Cycles, Bank Credit and Crises. Economics Letters 2013, 120(2), 229-231.
• Dietrich D, Vollmer U. Are Universal Banks Bad for Financial Stability? Germany During the World Financial Crisis. Quarterly Review of Economics and Finance 2012, 52(2), 123-134.
• Dietrich D, Hauck A. Government interventions in banking crises: effects of alternative schemes on bank lending and risk taking. Scottish Journal of Political Economy 2012, 59(2), 133-161.
• Dietrich D, Jindra B. Corporate Governance in the Multinational Enterprise: A Financial Contracting Perspective. International Business Review 2010, 19(5), 446-456.
• Dietrich D, Vollmer U. International Banking and Liquidity Allocation: Cross-border Financial Services versus Multinational Banking. Journal of Financial Services Research 2010, 37(1), 45-69.
• Dietrich D. Asset Tangibility and Capital Allocation. Journal of Corporate Finance 2007, 13(5), 995-1007.