"there is NO evidence that government debt exceeding 90% of GDP somehow negatively impacts growth."
Correct, 90% is not the magical, universal debt/GDP:dGDP inflection point it was made out to be.
"there is NO EVIDENCE that more government debt causes slower economic growth"
Whoah, whoah. Try the refutation paper [1]. It finds "that average GDP growth tails off somewhat when the public debt/GDP ratio increases towards 120 percent."
There is no strong inflection point ("the scatterplot does suggest a non-linearity in the relationship, but that occurs in the change in the public debt/GDP ratio from 0 to 30 percent"). But there is a monotonically decreasing debt/GDP:dGDP relationship.
It is more subtle than previously characterised, and thus potentially mitigatable in the short term, but let's not take Einstein's refutation of Newtonian physics to mean gravity doesn't exist.
Correct, 90% is not the magical, universal debt/GDP:dGDP inflection point it was made out to be.
"there is NO EVIDENCE that more government debt causes slower economic growth"
Whoah, whoah. Try the refutation paper [1]. It finds "that average GDP growth tails off somewhat when the public debt/GDP ratio increases towards 120 percent."
There is no strong inflection point ("the scatterplot does suggest a non-linearity in the relationship, but that occurs in the change in the public debt/GDP ratio from 0 to 30 percent"). But there is a monotonically decreasing debt/GDP:dGDP relationship.
It is more subtle than previously characterised, and thus potentially mitigatable in the short term, but let's not take Einstein's refutation of Newtonian physics to mean gravity doesn't exist.
[1] http://www.peri.umass.edu/fileadmin/pdf/working_papers/worki...