Economics, the “Dismal Science”…

One of the key arguments favouring austerity in the recent economic debates is a single paper that supposedly established that high levels of debt as  related to the GDP hamper economic growth.

Turns out the paper was wrong. Among other things, it had  an egregious calculation error.

As this commenter puts it: “If this error turns out to be an actual mistake Reinhart-Rogoff made, well, all I can hope is that future historians note that one of the core empirical points providing the intellectual foundation for the global move to austerity in the early 2010s was based on someone accidentally not updating a row formula in Excel.”.

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