The US debt crisis will clearly dominate the agenda in the coming week, so it is worth summarising and expanding on the points we have made so far. In short, we continue to think that the Federal government will be able to avoid a default, but will probably still lose its AAA credit rating. Default might also only be averted at the cost of a temporary shutdown of non-essential government services that could tip the US economy into recession. It is important not to lose sight either of the underlying fiscal problems that have caused the crisis in the first place.
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