PARTICIPANTS
John Cochrane, David Brady, John Gunn, Bob Hall, Cosmin Ilut, Doug Irwin, Chad Jones, Pete Klenow, Stephen Langlois, David Mauler, Ken Scott, John Shoven, Alp Simsek, Chris Tonetti, John Taylor

ISSUES DISCUSSED
John Cochrane, senior fellow at the Hoover Institution and the AQR Capital Management Distinguished Service Professor of Finance at the University of Chicago’s Booth School of Business, discussed his work on “A New Structure for U.S. Federal Debt” (see http://faculty.chicagobooth.edu/john.cochrane/research/papers/Cochrane_US_Federal_Debt.pdf.) Cochrane began by reviewing the goals of the U.S. Treasury. He argued that the Treasury could more effectively achieve these goals if its toolbox was restructured. Cochrane spelled out and explained seven main points comprising his proposal for restructuring U.S. debt.

  1. All debt will be perpetual
  2. Issue fixed value, floating-rate electronically transferable debt
  3. Issue nominal perpetuities
  4. Issue indexed perpetuities
  5. Issue tax-free debt—no corporate and personal income, estate, capital gains taxes
  6. Issue variable coupon debt—the government has the right to temporarily reduce coupons
  7. Introduce swaps—the Treasury transacts in swap contracts between these securities

Upcoming Events

Sunday, July 13, 2025 9:00 AM JST
Aloha Tower, Honolulu, Hawaii, 1930s, Dennis M. Ogawa Nippu Jiji Photograph Collection, Hoji Shinbun
Traversing The Socio-Economic Frontiers Of The Empire Of Japan And The Pacific World
Co-hosted by the Center for Modern Japanese Legal and Political Document, Faculty of Law, Graduate Schools for Law and Politics, University of Tokyo… University of Tokyo
Sunday, July 13, 2025 9:00 AM JST
Aloha Tower, Honolulu, Hawaii, 1930s, Dennis M. Ogawa Nippu Jiji Photograph Collection, Hoji Shinbun
ヒト・モノ・カネの移動からみた日本帝国と環太平洋世界: 日本・アメリカ大陸関係史のフロンティア
共催:東京大学大学院法学政治学研究科 附属近代日本法政史料センター 明治新聞雑誌文庫 スタンフォード大学フーバー研究所 University of Tokyo
Sunday, July 27, 2025
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Advancing Policy Through Dialogue: Maintaining Excellence And Innovation In S&T
The Hoover Institution Program on the US, China, and the World invites you to Advancing Policy Through Dialogue: Maintaining Excellence and…
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