Reinhart-Rogoff Debt Scare

The Reinhart-Rogoff Debt Scare refers to a widely-cited study by economists Carmen Reinhart and Kenneth Rogoff, suggesting that when a country's debt exceeds about 90% of its GDP, economic growth slows significantly. This idea influenced policymakers to reduce debt levels, fearing economic harm. However, in 2013, errors found in their analysis—such as spreadsheet mistakes and selective data interpretation—cast doubt on the strength of this link. The episode highlighted how influential research can shape policies and the importance of rigorous data verification before making economic decisions.