Transcripts for CNN Fareed Zakaria GPS 20130602 14:39:00 : v

CNN Fareed Zakaria GPS June 2, 2013 14:39:00

ken is a magnificent economist. does fabulous work over the years. one paper that was thrown out hastily, unfortunately, is the one that has had the greatest impact on policy debate. you know, never mind the question. did they make the data available? well, other people, not in a way, that's all irrelevant. the fact of the matter is this one result, claimed result which is that growth falls off a cliff when debt exceeds 90% of gdp. that's what they picked up and that result is false. that result is clearly not true. there is a mild, negative correlation between debt and growth, but that cliff doesn't exist. never existed in the data and certainly isn't anything that anyone should believe now. that paper of theirs did a lot of damage by giving people who didn't want stimulus, who didn't want any kind of policy a way to scare their opponents to say, if we don't do it my way, we'll go over the 90% line and terrible

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