A new visualization of the Reinhart and Rogoff data Focuses on the most important lever a government policy maker has at a single point in time – the deficit for the upcoming year Recently there has been much controversy about the effects of high debt on growth. I covered this here last week. The controversy revolves […]
In an ideal world, new money is created and exchanged for assets at the prevailing market price. There’s no advantage to the seller, who only receives what he or she would receive on the open market. In the real world, the market price is affected by each transaction, and it is not possible to create […]
Reinhart and Rogoff may understate correlation between high debt and low growth. Heavy selection bias in Reinhart and Rogoff, Herndon, Ash and Pollin, Dube, Kimball and Wang. The most pernicious effects of high debt ignored. Attempts to determine causation flawed due to arbitrary assumptions and selection bias. Policy makers should be very wary in using […]
“the consequences of economic devastation are very real indeed (the Greek suicide rate, for example, just hit a 50-year high)” Ryan Cooper of the Washington Monthly argues that the national debt of the US is benign, that monetary stimulus will not create inflation and that more fiscal stimulus is needed to prevent economic devastation such […]
A review of SEVEN HOWLERS FROM MICHAEL KINSLEY’S VERY MISGUIDED WAR AGAINST PAUL KRUGMAN Brad DeLong uses a typically heady mix of brash partisanship, rough-and-ready characterizations, and schoolyard cheerleading in his latest attempt to discredit one who opposes his Keynesian ideals. “Paul Krugman: 6-0, 6-0, 6-0”, he declares in his self-congratulatory conclusion (Krugman being the topic […]
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