Few economic papers ever stirred up Washington as much as the 2010 analysis of the relationship between sovereign debt and crippled growth by Ken Rogoff and Carmen Reinhart.
It met with incredible acclaim and fed into fears of American decline. The gospel-like trust in the research only amplified its fall from grace, after follow-up research issued Tuesday found errors in its weighting and Excel spreadsheet calculations.
As weird as it sounds, this changes everything and nothing about the debate over the U.S. national debt.
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