17 April 2013

USA / EU/ MACRO ECONOMICS / ACADEMICS: 18 April UPDATE: Rogoff/Reinhart Admit Major Error In 2010 Paper; Doctoral Student Herndon Uncovered Errors.

       For the macroeconomics wonks, geeks and nerds out there...here's an interesting but somewhat technical news item.
       Harvard economists Kenneth Rogoff (above) and Carmen Reinhart admitted making mistakes in a 2010 paper...'Growth in a time of Debt'...that strongly argued for fiscal cutbacks.
    The paper was widely cited by USA Tea Party conservatives...and EU austerity advocates.
    The 2 authors admit they left some critical date out of their calculations.
    The error was uncovered by 3 economists at UMass/Amherst.
    Despite the errors...Rogoff and Reinhart still defend the paper's central message.

    FOR MORE DETAILS On: Thomas Herndon...the econ doctoral student who spotted the paper's glaring errors.