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John H. Cochrane

What John H. Cochrane thinks about price gouging

@john-cochrane · 23 positions · 0 changes of mind

Economist at the Hoover Institution, previously at the University of Chicago's Booth School of Business, and the author of the fiscal theory of the price level. Writes at The Grumpy Economist.

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John H. Cochrane did not write this page.

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4 dated positions, 2024, in their own words. Our reading of what John H. Cochrane has said — not written or endorsed by them.

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The shading behind a date shows how recently it was said: full within a month, empty after three years.

  1. Our readingPrice gouging should be legal, because a sharply higher price is what sends scarce supply to the people who need it most.

    Their wordsPrice gouging is wonderful for all the reasons that letting supply equals demand is wonderful. When there is a limited supply, then a sharply higher price directs that supply to those who really need it.

    ↗Praise for Price-Gouginggrumpy-economist.com 1st of 4 in this piece

  3. Our readingLaws against price gouging are what cause hoarding, because it is the expectation of empty shelves that makes people stock up.

    Their wordsHoarding goes with price controls, anticipated empty shelves.

    ↗Praise for Price-Gouginggrumpy-economist.com 2nd of 4 in this piece

  5. Our readingWhen a shock falls hardest on the poor, hand out cash rather than hold the price down.

    Their wordsBut more deeply, if distributional consequences of a shock are important, then hand out cash. So long as everyone faces the same prices.

    ↗Praise for Price-Gouginggrumpy-economist.com 3rd of 4 in this piece

  7. Our readingHanding out cheques during Covid and accepting the inflation was less damaging than price controls and rationing would have been.

    inflation

    Their wordsWe got inflation, but we did not get the devastation that would have been caused by price controls and rationing.

    ↗Praise for Price-Gouginggrumpy-economist.com 4th of 4 in this piece

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