In his study, Reinhart and Rogoff wrote: "While the ratio of public debt to GDP of the country has reached 90%, which would reduce the country's GDP by 0.1%, whereas, if the ratio is below 90%, the GDP growth averaged about 3-4%. " These arguments are the policy makers world widely used to justify the spending cuts. But, studies doctoral student Thomas Herndon University of Massachusetts have discovered an error in the calculation of the two boards professor.
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