Recently a grad student exposed errors in a highly influential paper on austerityand debtload for countries related to economic growth. This paper has been the centre of the austerity movement.
The following is an interview from CBC's As It Happens with the student in which he explains what he discovered.
AUSTERITY STUDENT Duration: 00:07:47
In Economics, "Growth in a Time of Debt' is a famous work used to support the case for austerity measures. But now questions are being raised about the paper's research.
In January 2010, Harvard Professors Carmen Reinhart and Ken Rogoff presented the paper in Atlanta. And in that study, the two economists argue that a country's economic growth slows dramatically when debt rises above 90% of GDP.
Well, some US and European pro-austerity politicians have used that conclusion to back introducing cuts -- rather than injecting more borrowed money into an economy. But now holes have been found in the paper's research. Not by a pre-eminent economist… well he's not yet… But by a grad student working on a routine assignment.
Thomas Herndon is said student, and we reached him at the University of Massuchusetts Amherst, in Amherst.