The UK’s price range disaster final September led to a plunge within the worth of the pound, the sacking of the Chancellor of the Exchequer after 39 days in workplace, and a vote of no confidence towards the Prime Minister. These occasions spotlight how fiscal insurance policies can have wide-spread political and financial penalties.
Because the U.S. Congress fails to lift the debt ceiling in a well timed method, what classes may U.S. policy-makers draw from the British expertise? How does failure to lift the debt ceiling have an effect on religion in U.S. Treasury debt? And what are the rammifications of eroding belief in U.S. debt? Adam Posen joins EconoFact Chats to debate these points.
Adam is the President of the Peterson Institute for Worldwide Economics. He served seven phrases as an advisor to the U.S. Congressional Price range Workplace, and a three-year time period on the Financial institution of England’s Financial Coverage Committee.