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INET's Rob Johnson and Tom Ferguson on Debt, Growth, and Austerity
Long before the recent controversy, INET Executive Director Rob Johnson and INET Director of Research Projects Tom Ferguson produced a paper titled “A World Upside Down?: Deficit Fantasies in the Great Recession,” which tackled both the Reinhart and Rogoff research and the Alesina paper on so-called expansionary contraction.
Johnson and Ferguson show that the RR data from the “Growth in a Time of Debt” paper excludes Britain's industrial revolution, where Britain had Debt/GDP ratios of over 200% and still maintained high growth rates.
Figure 1 (reproduced below) shows the graph for the British data, which contradicts RR's conclusions in “Growth in a Time of Debt.”
The full paper from Johnson and Ferugson is attached below.
| Attachment | Size |
|---|---|
| Johnson and Ferguson: A World Upside Down? Deficit Fantasies in the Great Recession | 83.66 KB |
2013-04-18 12:48:09
Source: http://ineteconomics.org/blog/inet/inets-rob-johnson-and-tom-ferguson-debt-growth-and-austerity
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