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  • billyliar66 billyliar66 Apr 19, 2013 9:56 AM Flag

    Cornerstone of Deficit Reduction Theory Based on Excel Spreadsheet Error

    I know econometrics are considered voodoo to many of the GOP fanatics here. Still, the intellectual world is rocking from an expose. It seems the cornerstone of 'deficits are bad' policy, is based on a scholarly paper by two authors: Carmen Reinhart and Kenneth Rogoff. Their work boiled down: empirical proof if a nation's debt exceeds 90% of GDP, grow slows.

    The GOP loves this, and the work of these two is the basis for GOP deficit policy.

    Turns out, their calculations are off, wildly, badly, all due to lack of skill in using MS Excel. The data cited by the pair, when processed properly, without errors, negates their conclusion, and shows the fallacy in the GOP economic philosophy.

    Google: amherst excel deficit

    A graduate student at Amherst exposed the massive error and it's erroneous conclusion.

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