John H. Cochrane

Senior Fellow
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Biography: 

John H. Cochrane is a senior fellow at the Hoover Institution. He is also a research associate of the National Bureau of Economic Research and an adjunct scholar of the CATO Institute. 

Before joining Hoover, Cochrane was  a Professor of Finance at the University of Chicago’s Booth School of Business, and earlier at its Economics Department. Cochrane earned a bachelor’s degree in physics at MIT and his PhD in economics at the University of California at Berkeley. He was a junior staff economist on the Council of Economic Advisers (1982–83).

Cochrane’s recent publications include the book Asset Pricing and articles on dynamics in stock and bond markets, the volatility of exchange rates, the term structure of interest rates, the returns to venture capital, liquidity premiums in stock prices, the relation between stock prices and business cycles, and option pricing when investors can’t perfectly hedge. His monetary economics publications include articles on the relationship between deficits and inflation, the effects of monetary policy, and the fiscal theory of the price level. He has also written articles on macroeconomics, health insurance, time-series econometrics, financial regulation, and other topics. He was a coauthor of The Squam Lake Report. His Asset Pricing PhD class is available online via Coursera. 

Cochrane frequently contributes editorial opinion essays to the Wall Street Journal, Bloomberg.com, and other publications. He maintains the Grumpy Economist blog.

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Recent Commentary

Analysis and Commentary

The Next Crisis?

by John H. Cochrane via Grumpy Economist
Thursday, December 8, 2016

Where will the next crisis come from? Every crisis starts with a pile of debt that can't be paid back, and shady accounting to hide that debt. When one big one goes under, everybody starts to question the shady deals they've invested in, the extend-and-pretend game ends, heretofore simple rolling over of short term debt suddenly ends, and the run starts.

Featured

Balance Sheet Balance

by John H. Cochrane via Grumpy Economist
Wednesday, December 7, 2016

The Fed has a huge "balance sheet" -- It owns about $3 trillion of government bonds and mortgage backed securities, which it finances by issuing about $1 trillion of cash and $2 trillion of reserves -- interest-bearing accounts that banks have at the Fed. Is this a problem? Should the Fed trim the balance sheet going forward?

Central Bank Governance And Oversight Reform: A Panel Discussion

by Michael D. Bordo, John H. Cochrane , Charles I. Plosser, John B. Taylor, Kevin Warsh
Tuesday, December 6, 2016

The Hoover Institution hosted "Central Bank Governance & Oversight Reform: A Panel Discussion" on Tuesday, December 6, 2016 from 10:00am - 12:00pm EST.

Analysis and Commentary

Carrier Commentary

by John H. Cochrane via Grumpy Economist
Saturday, December 3, 2016

When Paul Krugman, Larry Summers, Sarah Palin, and the Wall Street Journal all agree on something -- that presidential deal-making and strong-arming over plant location is a terrible idea -- it's worth paying attention to.

Featured

A Better Choice

by John H. Cochrane via Grumpy Economist
Wednesday, November 30, 2016

Roll up your shirtsleeves, financial economists. As reported by Elizabeth Dexheimer at Bloomberg, Rep. Jeb Hensarling is “interested in working on a 2.0 version,” of his financial choice act, the blueprint for reforming Dodd-Frank. “Advice and counsel is welcome."

In the News

Central Bank Governance Meeting

by John H. Cochrane via Grumpy Economist
Tuesday, November 29, 2016

I'll be part of "Central Bank Governance and Oversight Reform: A Panel Discussion" at the Hoover Institution Washington DC offices, Tuesday Dec 6, 2016 10:00-12:00. The panelists will be Michael Bordo, John Cochrane, Charles Plosser, John Taylor, and Kevin Warsh.

Featured

Growth Is Good: Why Slow Growth Can't Be The New Normal

by John H. Cochrane via Policyed.org
Monday, November 28, 2016

America’s economy is growing at half the rate it used to. Slow growth rates have enormous effects on the quality of life over long periods of time. Getting back to rapid economic growth will alleviate budgetary problems, increase paychecks, and lead to widely shared prosperity.

Featured

Exceptionalism

by John H. Cochrane via Grumpy Economist
Wednesday, November 23, 2016

For Thanksgiving, I offer a rumination. Last month, the Hoover Institution's fall retreat was organized around the theme of American Exceptionalism. I talked about the nexus between economics, rule of law, regulation, and exceptionalism.

Housing
Featured

How To Raise House Prices And Inequality

by John H. Cochrane via Grumpy Economist
Friday, November 18, 2016

From Chris Kirkham in today's Wall Street Journal, department of you can't make this stuff up: Nearly two-thirds of Los Angeles voters last week approved a citywide affordable-housing requirement.... The rule requires that up to 25% of units in rental properties and up to 40% in for-sale projects meet affordability guidelines. 

Analysis and Commentary

Yglesias Discovers Rule Of Law

by John H. Cochrane via Grumpy Economist
Thursday, November 17, 2016

Matt Yglesias (HT Marginal Revolution) writes well of the danger facing America in the era of the regulatory state.

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Current Online Courses

Asset Pricing, Part 1, via Coursera and the University of Chicago

This course is part one of a two-part introductory survey of graduate-level academic asset pricing. We will focus on building the intuition and deep understanding of how the theory works, how to use it, and how to connect it to empirical facts. This first part builds the basic theoretical and empirical tools around some classic facts. The second part delves more deeply into applications and empirical evaluation. Learn more. . .