The discovery of an error in an influential research paper by Harvard University economists Carmen Reinhart and Kenneth Rogoff has sparked an academic firestorm. It’s time to sort through the wreckage.
Former Treasury Secretary Lawrence Summers said he expects healthy economic growth in the U.S. this year and next and doesn’t see a “need to panic” over a March employment report that shows slowing job creation.
Harvard University economists Carmen Reinhart and Kenneth Rogoff have defended the technical aspects of a 2010 paper that’s been cited in the U.S. and Europe to bolster arguments to drive down budget deficits, saying their critics have “politicized the issue.”
Former Treasury Secretary Lawrence Summers said in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend, that he expects healthy economic growth in the U.S. this year and next and doesn’t see a “need to panic” over a March employment report that shows slowing job creation.
An academic tussle has rekindled debate over one of the most important economic questions of our time: Are the governments of the developed world -- and particularly the U.S. -- taking on too much debt? There’s no definitive answer, and we’re no fans of austerity in the current economic environment. But it doesn’t take a Nobel laureate to understand that we should be worried.
The International Monetary Fund’s Christine Lagarde used the word “challenging” to describe the Cyprus rescue to which she pledged $1.3 billion. She might say the same about where the IMF stands with the U.S. Congress.
Just as lawmakers force as much as $85 billion of budget cuts on the federal government, economists Bradford DeLong and Lawrence Summers have a message for Washington: Now is the perfect time to spend more, not less.