21.04.2013 - 19:44 [ Guardian ]

There‘s no need for all this economic sadomasochism

The intellectual justification for austerity lies in ruins. It turns out that Harvard economists Carmen Reinhart and Ken Rogoff, who originally framed the argument that too high a „debt-to-GDP ratio“ will always, necessarily, lead to economic contraction – and who had aggressively promoted it during Rogoff‘s tenure as chief economist for the IMF –, had based their entire argument on a spreadsheet error.