Major problems with influential Reinhart-Rogoff "austerity" paper

Discussion in 'Politics, Religion, Social Issues' started by jnpy!$4g3cwk, Apr 16, 2013.

  1. jnpy!$4g3cwk macrumors 65816


    Feb 11, 2010
    A paper that I have referred to myself turns out to be highly flawed:

    But, the real shocker for me is this:

    I've seen this sort of thing before, and, I admit I am rather dismayed to see such shoddy work. Spreadsheet errors are so easy to make that it is rather disturbing to see something like this make it this far.

    I wonder how many people have lost their jobs because of this sloppiness? This paper was often cited during arguments that "austerity" was required.

    I think huge government debt is generally a bad policy, but, at the same time, as I have commented before, the time to reduce debt is during inflationary overheated growth, not during a deflationary recession.
  2. Zombie Acorn macrumors 65816

    Zombie Acorn

    Feb 2, 2009
    Toronto, Ontario
    I don't think most people disagree with the spend more during the recession and then reign in spending during the good times, until the good times hit and they don't want to cut spending.

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