This research has been quoted in recent years and has been the basis of Government Policy like Austerity programs in Europe and also of Paul Ryan budget proposals and investor decisions. Unfortunately, for such an important research the data was not vetted properly.
When researchers have looked at the data and the Excel spreadsheet behind the research they found significant issues. They are summarized below for us non-economists:http://www.nextnewdeal.net/rortybomb/researchers-finally-replicated-reinhart-rogoff-and-there-are-serious-problems
There are 3 types of errors in the data:
* Selective Exclusions
* Unconventional Weighting
* Excel Sheet Coding Error
This is actually a big deal and why peer reviewing process is important. So, these errors combined that out the basis of 90% debt being the cut-off point of fiscal cliff. There is probably a cut-off but it is much less clear cut than it used to be. Meanwhile, the Austerity prescriptions should be re-reviewed and adjusted.