Monthly Archives: June 2013

Visualization of Government Deficits and Growth

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 […]

Festering in the Rupture Between Real and Ideal

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 […]

None the Wiser after Reinhart, Rogoff, et al

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 […]