from Renewing America

Fiscal Revisionism

April 30, 2013

Blog Post
Blog posts represent the views of CFR fellows and staff and not those of CFR, which takes no institutional positions.

Following the controversy sparked by errors found in Harvard professors Carmen Reinhart and Ken Rogoff’s This Time is Different that has played a central role in supporting austerity policies in the debate over deficit reduction, CFR senior fellow Robert Kahn responds to the question of how the work's revision changes the landscape for macroeconomic policy, if at all.

On his blog Macro and Markets, Kahn lays out five reasons why the controversy over Reinhart and Rogoff’s data likely will not result in any policy changes, though it will cause economists to take a good, hard look at what is known about debt sustainability.