There's no need for all this economic sadomasochism

Graeber, David (2013) There's no need for all this economic sadomasochism. Guardian. ISSN 0261-3077

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Abstract

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. The premise behind the cuts turns out to be faulty. There is now no definite proof that high levels of debt necessarily lead to recession.

Item Type:	Article
Official URL:	http://www.theguardian.com/
Additional Information:	© 2013 Guardian News and Media Limited
Divisions:	Anthropology
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HN Social history and conditions. Social problems. Social reform
Date Deposited:	30 Sep 2013 13:35
Last Modified:	06 Oct 2023 10:00
URI:	http://eprints.lse.ac.uk/id/eprint/53247

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