April 24, 2013

Deficits Are Less Bad Than Had Been Believed?

Supposedly a Harvard paper on which the deficit hawks have relied contains serious errors. Supposedly deficits are not nearly as bad for growth as Reinhart and Rogoff had claimed.

Henry Blodget gloats that deficit doves like Krugman have been proven correct. Yes, this is the guy who is banned for life from the securities industry.

Jeez, don't economists check each others' work when they debate issues of national---no, global---importance? Tell me again why ruling-class elites deserve their lifestyle, status, and pay? Can't anybody here play this game?

Rogoff and Reinhart respond here.

I'm not jumping to conclusions, but the Harvard duo doesn't look good here.

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