August 2, 2011
Economics
My working assumptions have been that any deal on the debt ceiling would impair an economic recovery. The estimates are now beginning to come in. Here’s Macroadvisors, Debt Ceiling Deal: Little Fiscal Drag in ’12, Big Risk in ’13. And here’s Brad DeLong’s response. We’ll add more as we find them.
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July 12, 2011
Debt
Even without a default on debt payments, if the Federal government fails to increase the limit and constrains its outflows because they can no longer borrow and if the crisis goes long enough, there will nevertheless be governmental defaults. They’ll happen downstream in state and local governments which are dependent on Federal funds. Most obviously, […]
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