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Why hasn’t Japan’s government debt wreaked havoc (yet)?

2 pointsby abhi3about 5 years ago

1 comment

nabla9about 5 years ago
This is from 2014.<p>Authors use Reinhart-Rogoff argument that huge government debt-to-gdp ratio hurts growth even if it&#x27;s domestic debt. It had huge political impact and many government adopted austerity-policies.<p>It&#x27;s the most famous errors in economics. There was Excel spreadsheet errors that completely invalidated the argument. The methodological errors became just a side show.