Download or read book Does High Public Debt Consistently Stifle Economic Growth? written by Thomas Herndon and published by . This book was released on 2013 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: "They replicate Reinhart and Rogo (2010a and 2010b) and that coding errors, selective exclusion of available data, and unconventional weighting of summary statistics lead to serious errors that inaccurately represent the relationship between public debt and GDP growth among 20 advanced economies in the post-war period. Their ending is that when properly calculated, the average real GDP growth rate for countries carrying a public-debt-to-GDP ratio of over 90 percent is actually 2.2 percent, not 0:1 percent as published in Reinhart and Rogo. That is, contrary to RR, average GDP growth at public debt/GDP ratios over 90 percent is not dramatically different than when debt/GDP ratios are lower. They also show how the relationship between public debt and GDP growth varies significantly by time period and country. Overall, the evidence they review contradicts Reinhart and Rogo's claim to have identied an important stylized fact, that public debt loads greater than 90 percent of GDP consistently reduce GDP growth."--Abstract.