Bonnie Kavoussi worked for Huffington Post before coming to the Master of Applied Economics program at the University of Michigan that I wrote about last week. Bonnie now has her own blog, where Bonnie reports on Christina Romer’s very interesting talk at the University of Michigan on Tuesday (including an embedded video of the talk). The bottom line is that both of Carmen Reinhart and Ken Rogoff’s big claims in the last few years have been called into serious question:
- Along with many others (many of whom we link to in our follow-up column here), Yichuan Wang and I found no evidence in Reinhart and Rogoff’s data to support their claim that higher national debt lowers the rate of economic growth.
- As Bonnie reports, and as I can verify from my own attendance at the talk, Christina Romer and David Romer question, on solid grounds, Reinhart and Rogoff’s claim that financial crises lead with high probability to a relatively intractable, long-lasting economic downturn.