John H. Cochrane

Senior Fellow
Research Team: 
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.

Filter By:

Topic

Type

Recent Commentary

Analysis and Commentary

Covered Interest Parity

by John H. Cochrane via Grumpy Economist
Monday, March 20, 2017

Here's how covered interest parity works. Think of two ways to invest money, risklessly, for a year. Option 1: buy a one-year CD (conceptually. If you are a bank, or large corporation you do this by a repurchase agreement). Option 2: Buy euros, buy a one-year European CD, and enter a forward contract by which you get dollars back for your euros one year from now, at a predetermined rate.

Featured

Trade Insight

by John H. Cochrane via Grumpy Economist
Saturday, March 18, 2017

Daniel Hannan, a (soon to be unemployed?) UK member of the European Parliament, writes insightfully about trade in the Saturday Wall Street Journal.

Featured

The Real Fed Issues

by John H. Cochrane via Grumpy Economist
Wednesday, March 15, 2017

The media are usually fixated on the angels on heads of pins question, will she or won't she raise rates 0.25%? As such Fed discussion misses many of the really important issues. Fed’s Challenge, After Raising Rates, May Be Existential by Eduardo Porter in the New York Times is an excellent counterexample and a nice primer on some of the really big issues facing the Federal Reserve -- and the nation -- going forward.

Featured

Capital Illogic

by John H. Cochrane via Grumpy Economist
Tuesday, March 14, 2017

More Bank Capital Could Kill the Economy write Tim Congdon and the usually sensible Steve Hanke in today's Wall Street Journal.

Analysis and Commentary

Target The Spread

by John H. Cochrane via Grumpy Economist
Tuesday, March 7, 2017

What should the Federal Reserve do, to control inflation, given that nominal interest rate = real interest rate + expected inflation, and that real interest rates vary over time in ways that the Fed cannot directly observe?

Featured

Russ Roberts On Economic Humility

by John H. Cochrane featuring Russell Robertsvia Grumpy Economist
Friday, March 3, 2017

Russ Roberts has an excellent essay, What do economists know? on economic humility.

Featured

Long Run Fed Targets

by John H. Cochrane via Grumpy Economist
Tuesday, February 21, 2017

What should the Fed's long-run interest rate target be? The traditional view is that the glide path should aim at 4% -- 2% real plus 2% inflation.

apocalypse, war, fallout
Analysis and Commentary

Miserable 21st Century

by John H. Cochrane via Grumpy Economist
Monday, February 20, 2017

As of late 2016, the adult work rate in America was still at its lowest level in more than 30 years. To put things another way: If our nation’s work rate today were back up to its start-of-the-century highs, well over 10 million more Americans would currently have paying jobs.

Analysis and Commentary

Trump Derangement Syndrome

by John H. Cochrane via Grumpy Economist
Monday, February 20, 2017

On Sundays it has been my habit to read the New York Times Sunday Review. I like to peer in the bubble. On view, the old lady is still full-on foaming at the mouth with Trump Derangement Syndrome. 

Analysis and Commentary

Economies In Reverse

by John H. Cochrane via Grumpy Economist
Monday, February 13, 2017

How can economies forget? How is it that once we have learned to do something better, that knowledge can be lost and economies move backward? How can productivity decline? Viewing productivity as knowledge, it would seem almost impossible for it to do so -- and real business cycle theory was often derided on that point.

Pages

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. . .