Recently, Douglas W. Diamond, winner of the 2022 Nobel Prize in Economics and professor at the University of Chicago, accepted an exclusive interview with China Business News in Paris, France.

Diamond said the Fed's mistake was not raising rates, but promising too much low rates in the future. "The central bank thought this (promise) was a free, extra credit. It was not the case, and it led to the collapse of Silicon Valley Bank." Diamond added that fortunately, the "dilemma" of the Federal Reserve is close to the end of interest rate hikes.

Diamond believes the best way to guard against further risks is to ensure that banks are capital adequacy ratios of at least 7%, measured at market rather than book value.

“The nature of a crisis is that everyone is trying to get out at the same moment, and short-term debt crises are the manifestation of that,” Diamond added. “Crisis, by definition, is doomed to be almost unpredictable. If a crisis can be perfected If we predict it, we will definitely step in and fix the problem early. It often happens where we are not worried about it."