Remember the Reinhart-Rogoff paper released in 2010 which concluded that having a debt to GDP of over 90% is a significant drag on economic growth? Well as it turns out, apart from other problems, they literally screwed up the Excel formula by not selecting all the rows – and on top of it, they used the wrong number for New Zealand, -7.9% instead of 2.6%, now that’s a big bloody mistake! They further refused to give out their data until now.
What’s more astonishing is that this has been cited by countless policy-makers worldwide and has been the basis of many economic policies in recent years. This sort of thing comes as no surprise to many who understand that politicians are making all the wrong decisions based on Voodoo economics theories which just aren’t true. Need anyone be reminded of the efficient market hypothesis – officially laid to rest in the wake of the GFC?