Centrist Economics in a Polarised World
The volatile nature of modern discourse, particularly on social media, makes it challenging for centrist economists to present balanced views without being pigeonholed into specific ideological camps.
The Curse of Cash and Controversy
- The author's 2016 book, The Curse of Cash, faced backlash, receiving over 20 death threats from different groups due to the idea of phasing out $100 bills and supporting regulation.
- Despite the threats, the author appreciated the fact that critics understood the book's arguments, even if they disagreed with them.
The Reinhart-Rogoff Controversy
- In 2013, the author's work with Carmen M Reinhart, specifically the 2010 paper, faced criticism for alleged errors that were claimed to have influenced damaging austerity policies.
- The paper contained only one error not present in the 2012 journal version, which used an extensive dataset.
- The paper's conclusion was that high public debt correlates with slower economic growth, not that debt automatically causes short-term growth harm.
- The 90% debt-to-GDP ratio was not a threshold but an illustrative division to demonstrate underperformance among high-debt countries.
Debunking Austerity Misrepresentations
- The author clarified that their work never advocated austerity; rather, it highlighted the trade-off between debt and growth.
- Suggestions included exploring heterodox solutions and partial debt forgiveness for crisis-affected economies.
- An early crisis proposal advocated for temporarily relaxed inflation targets, which gained later acceptance.
Current Reception
- The author's latest book, Our Dollar, Your Problem, has received positive and open-minded engagement from across the ideological spectrum.
- There is cautious optimism for more balanced discussions in the future, despite past experiences of misrepresentation.
Author's Background: The author is a professor of economics and public policy at Harvard University, sharing personal views that do not reflect the opinions of the publication.