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Refine rediscovers unique equation and identifies key assumption, John Cochrane notes
Economist John Cochrane shared that in his recent revision of 'Inflation,' Refine used new notation to independently derive an equation Cochrane himself had not explicitly worked out.
Cochrane noted that Refine also pinpointed a term that becomes zero only under an additional assumption, specifically a geometric interest rate path.
Cochrane has previously outlined how the fiscal theory of the price level (FTPL) matches the success of leading macroeconomic theories without requiring strict causal tests. In a separate analysis, he described how social security is moving away from a savings-based model toward a pure transfer program. Both areas remain central to ongoing economic research.
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