Category Archive: Mr Micawber

May 13

The Reinhart-Rogoff Controversy and predictors of sovereign debt default

There has been much debate in the financial press recently about the implications of new evidence that seems to contradict the Reinhart-Rogoff rule. The strong version of the rule states that, once the ratio of national debt to GDP rises above 90%, it has a significant negative impact on the rate of economic growth. The …

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Permanent link to this article: http://www.goldenguinea.com/the-reinhart-rogoff-controversy-and-predictors-of-sovereign-debt-default/

Jan 08

The American fiscal deficit in simple terms

I am indebted to an old and wise colleague for the following, which puts the American fiscal crisis in easy-to-understand terms: “US Tax Revenue = $2,170,000,000,000 Federal Expenditure = $3,820,000,000,000 New debt (being the difference between the two) = $1,650,000,000,000 Total National Debt = $14,271,000,000,000 Recent budget cuts = $38,500,000,000. Now let’s remove 8 zeroes …

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Permanent link to this article: http://www.goldenguinea.com/the-american-fiscal-deficit-in-simple-terms/