The markets are right to be concerned about the wider implications if the US Federal government is unable to service its debts. This would be uncharted territory and no-one can be sure exactly how events would pan out. Nonetheless, provided any default were seen as temporary and “technical”, rather than reflecting a fundamental inability to pay, the fall-out should be limited and far less severe than that which followed the collapse of Lehman Brothers.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services