domingo, 21 de abril de 2013

"Reinhart mistake and Rogoff error" Excel depression!

The World can be so cruel sometimes! But seriously guys you deserved it.
Two years ago those both Economists made a theory based on dates about the growth of some countries and their own public debt. They said that if a country had more than 90% of debt the country will have a slow economic growth in the next years. 
Sounds "some" reasonable but Thats it, just "some". They confirm that the high debt leads to a slow growth without any other comment the Politicians used this during these two years to increase taxes (In order to decrease the debt) to get out of the depression. what¿?¿?... 
Even the Washington Post published an article saying that USA was in trouble because they will exceed the 90% of debt that the Economist consider dangerous. Yeah the economists, not "some", not "few", not "just two". 
Since the beginning that theory was always in discussion until few days ago where some teachers analysed the dates of Reinhart and Rogoff and they find out what really happened. 
Statistical errors, omission of relevant dates and what is really impressive, an error on excel formulas.  



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