Huebscher: Misreading Reinhart & Rogoff

Good read from MMT perspective.

Read it at Symmetry Capital (short)
Huebscher: Misreading Reinhart & Rogoff

by Art Patten

Art adds to Huescher's criticism:

We would add a few additional criticisms: •  R&R did not distinguish between sovereign (debt issued in domestic, inconvertible currency) and non-sovereign (debt issued in, or pegged to, external or other forms of hard currency) governments. •  Prevailing macroeconomic models still do not account explicitly for the fact that under a soft currency system, government deficit spending and debt constitute private sector saving and net financial assets. •  Finally, although Bob obtained much of his ammunition from an interview with Rogoff, R&R haven’t been completely innocent of letting the “90%” and similarly bad memes spin out of control.