Paper Cited by Paul rAyn in his Austerity Agenda Faulted for ‘Serious Errors’
A paper by Harvard University economists Carmen Reinhart and Kenneth Rogoff that has been cited by Republican lawmakers to justify eliminating the budget deficit contains “serious errors,” according to a study by a group of University of Massachusetts academics.
The Reinhart-Rogoff paper, “Growth in a Time of Debt,” argued that countries with public debt in excess of 90 percent of gross domestic product suffered measurably slower economic growth.
The new study -- by economists Thomas Herndon, Michael Ash and Robert Pollin -- says that the Harvard economists excluded some data and unconventionally weighted the statistics they included to reach their conclusions.
House Budget Committee Chairman Paul Ryan, a Wisconsin Republican, pointed to the work by Reinhart and Rogoff in his 2013 budget, “The Path to Prosperity: A Blueprint for American Renewal.”
“Essentially, the study confirmed that the massive debts of the kind the nation is on track to accumulate are associated with stagflation -- a toxic mix of economic stagnation and rising inflation,” the blueprint said.