News/Op-Eds John Cochrane News/Op-Eds John Cochrane

Financial Reform in 12 Minutes

A short paper on where we are. Dodd Frank and Resolution won't work. Regulate run prone liabilities not assets. A regulatory tax on debt will work better than arguing about a red line capital ratio. This turned in to the paper "Toward a run-free financial system"

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A short paper on where we are. Dodd Frank and Resolution won't work. Regulate run prone liabilities not assets. A regulatory tax on debt will work better than arguing about a red line capital ratio. This turned in to the paper "Toward a run-free financial system"

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News/Op-Eds John Cochrane News/Op-Eds John Cochrane

Think government is intrusive now? Wait until E-Verify kicks in.

Wall Street Journal. Congress wants every person in the country to get the Federal Government's approval before he or she can get a job. They must be kidding. See chapter 1 of Capitalism and Freedom

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Wall Street Journal. Congress wants every person in the country to get the Federal Government's approval before he or she can get a job. They must be kidding. See chapter 1 of Capitalism and Freedom

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News/Op-Eds John Cochrane News/Op-Eds John Cochrane

The interest rate paradox

Slides for a talk at Grant's spring conference. I haven't written up the talk yet, but if you were there and want the pictures here they are.

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Slides for a talk at Grant's spring conference. I haven't written up the talk yet, but if you were there and want the pictures here they are.

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News/Op-Eds John Cochrane News/Op-Eds John Cochrane

Treasury needs a better long game

Wall Street Journal. Local pdf. (Better:) Blog post with a few cuts restored and some notes. If the Fed wants to raise rates to 5%, it will raise the deficit by $900 billion. Will Congress let it do that? Fiscal policy limits monetary policy in a time of large debt. A much longer maturity structure would help.

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Wall Street JournalLocal pdf. (Better:) Blog post with a few cuts restored and some notes. If the Fed wants to raise rates to 5%, it will raise the deficit by $900 billion. Will Congress let it do that? Fiscal policy limits monetary policy in a time of large debt. A much longer maturity structure would help.

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News/Op-Eds John Cochrane News/Op-Eds John Cochrane

Running on Empty

Running on empty (pdf) (link to WSJ (html)) March 2 2013 Review of "The Banker's new Clothes" by Anat Admati and Martin Hellwig. Banks should issue a heck of a lot more equity, a heck of a lot less debt, and a heck of a lot less nonsense.

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Running on empty (pdf) (link to WSJ (html)) March 2 2013 Review of "The Banker's new Clothes" by Anat Admati and Martin Hellwig. Banks should issue a heck of a lot more equity, a heck of a lot less debt, and a heck of a lot less nonsense.

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News/Op-Eds John Cochrane News/Op-Eds John Cochrane

Having your cake and eating it too: The maturity structure of US debt

How the US Treasury can both lengthen and shorten its debt at the same time, to buy insurance against interest rate rises and provide "liquidity." A short paper diguised as comments on Greenwood, Hanson, and Stein “A Comparative Advantage Approach to Government Debt Maturity†at the Second Annual Roundtable on Treasury Markets and Debt Management, US Treasury, Nov. 15 2012.

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How the US Treasury can both lengthen and shorten its debt at the same time, to buy insurance against interest rate rises and provide "liquidity." A short paper diguised as comments on Greenwood, Hanson, and Stein â€œA Comparative Advantage Approach to Government Debt Maturity†at the Second Annual Roundtable on Treasury Markets and Debt Management, US Treasury, Nov. 15 2012.

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News/Op-Eds John Cochrane News/Op-Eds John Cochrane

Bloomberg TV interview

Bloomberg TV interview, Betty Liu, "In the loop" show, The ECB's huge "sterilized" bond buying announcement, and the future of the Federal Reserve.

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Bloomberg TV interview, Betty Liu, "In the loop" show, The ECB's huge "sterilized" bond buying announcement, and the future of the Federal Reserve.

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News/Op-Eds John Cochrane News/Op-Eds John Cochrane

CBO and the fiscal cliff

Bloomberg.com "Business class" OpEd. local copy ; blog post. A review of the CBO's forecast that the "fiscal cliff" will cause a recession. It's Keynesian, ignoring all incentive effects, and thus right but for the wrong reasons. Policy models should be much more transparent quantiative parables, showing the logic of their foreasts and not pretent to be authoritative black boxes.

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Bloomberg.com "Business class" OpEd. local copy blog post. A review of the CBO's forecast that the "fiscal cliff" will cause a recession. It's Keynesian, ignoring all incentive effects, and thus right but for the wrong reasons. Policy models should be much more transparent quantiative parables, showing the logic of their foreasts and not pretent to be authoritative black boxes.

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News/Op-Eds John Cochrane News/Op-Eds John Cochrane

All the world's troubles in 10 minutes

Update Sept 2012. In Government Policies and the delayed Economic Recovery Lee E. Ohanian, John B. Taylor and Ian J. Wright, eds., Stanford: Hoover Institution Press (Sept 2 2012), p. 193-199. (Whole book here ; Manuscript of my comments here. ) Written version of my remarks at the Hoover Conference, "Restoring Robust Growth in America," Dec 2 2011. Europe's crisis and how the economy is a garden, needing weeding not the latest fertilizer.

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Update Sept 2012. In Government Policies and the delayed Economic Recovery Lee E. Ohanian, John B. Taylor and Ian J. Wright, eds., Stanford: Hoover Institution Press (Sept 2 2012), p. 193-199. (Whole book here ; Manuscript of my comments here. ) Written version of my remarks at the Hoover Conference, "Restoring Robust Growth in America," Dec 2 2011. Europe's crisis and how the economy is a garden, needing weeding not the latest fertilizer.

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