FINANCIAL TIMES: …Kenneth Rogoff and Carmen Reinhart of Harvard University found that economic growth falls to a mean average of minus 0.1 per cent when public debt is greater than 90 per cent of output.
But researchers at the University of Massachusetts, Amherst, said that when they repeated the analysis with the same data they got a figure of plus 2.2 per cent…
The academic spat is important because the Rogoff-Reinhart result, published in 2010, is one of the strongest arguments for quickly raising taxes or cutting public spending to keep debt below the 90 per cent limit… (more)
