Deficit hawk dummies.
The basic reason deficit hawks object to a rise in the national debt is that the phrase “national debt” includes the word “debt”, and that word has negative emotional overtones. If we scrubbed the...
View ArticleJapan is the beacon for Keynesian economics?
Wow! talk about going out on a limb! The author points to Japan as an example of Keynesian success?? Devalue the currency, pump up debt to ridiculous levels, Zero interest rates and zero bond yields,...
View ArticleLet's do a Bruce Krasting "check back".
Bruce Krasting, There’s no need to “check back” in a year’s time to see how Japan is doing. What you call their “insane” debt level (about 200% of GDP) was the level that pertained in the UK and US...
View ArticleThe correlation is Euro Area driven.
Remove the 8 Euro Area members, and the one country pegged to the Euro (Denmark), and the correlation vanishes. No one doubts that fiscal policy has significant effects when one controls for monetary...
View ArticleAbenomics is Mostly Monetary Stimulus, not Fiscal
"In this respect it is perhaps worth highlighting the example of Japan. No country has a debt level anywhere near Japan’s which is now approaching 250 percent of GDP. Nonetheless the country’s new...
View ArticleHave you heard of outliers driving the data?
This is a worthless analysis. I recreated the graph as best I could from what you have here. With Greece in, your regression is barely significant, and the R^2 value is only ~50%. Take Greece out, and...
View ArticleResponding to Chance Rose: The Results Are Statistically and Economically...
In my blog post, I explicitly said that this was a simple figure that validated more rigorous methods. Bivariate regressions are not a good way to rigorously examine the impacts of austerity. That...
View ArticleOutliars? Bah, humbug
This a great data set and graph which clearly exhibits the effects of untimely austerity. Greece merely changes the slope of the regression, not the overall inclination of the slope or conclusions of...
View ArticleWhat Correlation
That is a very loose correlation. What's the R^2 on that, like .5? For those that don't know, R^2 measures how close the data points match the trend line superimposed on the graph. The values go from 0...
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