Success often depends on timing. Though Mr Blyth has been working on this book for two years, its launch seems to have come at a very appropriate moment. After several years of austerity measures, public opinion in countries across the world is becoming more critical on the cutbacks their governments have brought in to reduce their deficits. Adding to that is the discovery that Reinhart and Rogoff’s models, the theoretical underpinning of these policies, were erroneous. This is a well researched and well argued book and the title, “Austerity: The History of a Dangerous Idea”, will give you a clear indication of where the author stands.
Tag Archives: Reinhart
So, two of the most prominent and respected professors of finance in the world got it wrong! There are several interesting aspects to the Reinhart and Rogoff spreadsheet error saga and many commentators have jumped in to criticise their work now that we know they omitted out five countries. Perhaps the one thing that has not been said is that they had the good grace, open mindedness and humility to send their data to a graduate student that they had never met and wasn’t even a student at either of their universities. Professors do get it wrong, as do all human beings, but good ones are open to analysis and criticisms from others.