John H. Cochrane

Rose-Marie and Jack Anderson Senior Fellow
Biography: 

John H. Cochrane is the Rose-Marie and Jack Anderson 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

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Strategies for Monetary Policy

via Hoover Institution Press
Thursday, April 23, 2020

Assesses possible practical ways in which we might refine our existing monetary policy framework to better achieve our dual-mandate goals of full employment and price stability on a sustained basis.

Analysis and Commentary

Treasury Liquidity

by John H. Cochranevia Grumpy Economist
Thursday, April 23, 2020

So just what was the "disruption" in the Treasury market that so spooked the Fed, that now the Fed is buying more than the Treasury is selling?

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Bond Liquidity

by John H. Cochranevia The Grumpy Economist
Wednesday, April 22, 2020

When the Fed stepped in, were corporate bonds "illiquid," the market "dysfunctional," or were the prices just low, as they should be in advance of a Great Recession with larger bankruptcy risk? Did the Fed "liquefy" the market, "intermediate," grease the wheels, or is it just buying, and propping up prices so that bondholders can dump bonds on the Fed before things get really bad?

Analysis and Commentary

We Were Prepared

by John H. Cochranevia The Grumpy Economist
Wednesday, April 22, 2020

A lovely compilation from Judge Glock. Some excerpts: six months before the current outbreak, Congress passed the Pandemic and All-Hazards Preparedness and Advancing Innovation Act of 2019, which offered funds and planning authority for just such a crisis as we now face.

Analysis and Commentary

Mitigating Moral Hazard -- Unemployment Edition

by John H. Cochranevia The Grumpy Economist
Wednesday, April 22, 2020

As Kurt Huffman, restaurant owner, writes vividly in the WSJ, concerns that unemployment insurance paying more than wages might induce people to stay home even when jobs are available are not just scare stories told by heartless free-market economists.

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GoodFellows: Cold War 2

interview with John H. Cochrane, Niall Ferguson, H. R. McMaster, Bill Whalenvia Hoover Podcasts
Tuesday, April 21, 2020

Is a new “cold war” between America and China this generation’s defining economic and geostrategic engagement?

Analysis and Commentary

Forbearance

by John H. Cochranevia The Grumpy Economist
Tuesday, April 21, 2020

Peter Wallison has a worthy OpEd in the WSJ, "Forbearance." Continuing my earlier thoughts on the financial response here and here, I don't think he goes far enough.

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Cold War 2

featuring John H. Cochrane, Niall Ferguson, H. R. McMaster, Bill Whalenvia GoodFellows: Conversations From The Hoover Institution
Tuesday, April 21, 2020

If the US-Soviet standoff defined the second half of the 20th century, is a new “cold war” between America and China this generation’s defining economic and geostrategic engagement? Hoover senior fellows John Cochrane, Niall Ferguson and H. R. McMaster debate whether a new cold war indeed is under way and what defines the competition. (Spoiler alert: the three “GoodFellows” are not in agreement.)

Analysis and Commentary

Tidbits Of Wisdom

by John H. Cochrane quoting Niall Fergusonvia The Grumpy Economist
Monday, April 20, 2020

From my Hoover colleague Niall Ferguson. It is not just that Trump bungled his response to the crisis (though he certainly did). Much more troubling is the realisation that the parts of the federal government that are responsible for handling a crisis like this – supposedly, the genuine experts — bungled it too. 

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Bailout Redux

by John H. Cochranevia The Grumpy Economist
Monday, April 20, 2020

The greatest financial bailout of all time is underway. It’s 2008 on steroids. Yet where is the outrage? The silence is deafening. Remember the Tea Party and occupy Wall Street? “Never again” they said in 2008. Now everyone just wants the Fed to print more money, faster. (Well, there are some free market economists left. But we're a small voice!)

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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. . .