Monday, June 3, 2013

Does Paul Krugman suffer from Confirmation Bias

      There is a fight in the economics world caused by people who don't like the findings of a paper by Reinhart and Rogoff on the connection between the debt a country has and the GDP growth experienced by there economies.  Admittedly some of the problems were caused by R & R by overstating the effect on GDP when the debt gets to 90% of GDP.  However, it is relatively clear that debt does have some effect on GDP.   Paul Krugman is the leading the attack of the paper while ignoring the data that clearly shows there is a connection between the % of debt to GDP and the % of growth in the GDP itself.  A great article on this fight with links to the paper are here.  This is the typical act of the progressive I don't agree with the facts/results so I attack the person who delivers the information with which I don't agree.