A new review of the infamous Reinhart-Rogoff debt-to-GDP study further undermines the right-wing claim that high sovereign debt leads to low economic growth.
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University of Michigan economist Miles Kimball and undergraduate researcher Yichuan Wang, examining the Reinhart-Rogoff data, conclude that high levels of debt have no link to slow, much less reverse, long term economic growth:
Based on economic theory, it would be surprising indeed if high levels of national debt didn’t have at least some slow, corrosive negative effect on economic growth. And we still worry about the effects of debt. But the two of us could not find even a shred of evidence in the Reinhart and Rogoff data for a negative effect of government debt on growth.