This is an article by the NY Times discussing whether or not a research paper over countries with high debt and GDP output were calculated correctly. From this new point of view over the statistical analysis there has been a great debate started over the policies that were put in place over the original research paper.
Flaws are cited
After reading the article, do you think this could be true?
Does it concern you the theory was followed so intently after this research paper was published before many had proven what they found?
With your knowledge of debt and risk, would you consider countries with a high debt to be a place where there would be no GDP growth to begin with?
I definitely think this article could be true. I think that people assume that if one bad thing happens it will negatively affect other things that are closely associated, in this case large debt leading to very low GDP. It does concern me that people will just follow theories, rather than test them. I think that countries with large amounts of debt still have the ability to produce GDP growth.
ReplyDeleteI agree with Jake, the way people just follow theories blindly is surprising, they should do their own research and do tests as well.
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