The Fed on "Possible Macroeconomic Effects of a Temporary Federal Debt Default"
Calculated Risk
APRIL 19, 2023
economy—Treasury securities are the world’s “safe” asset and the dollar is the world’s main reserve currency. o In some extreme scenarios with a prolonged default, financial markets could be severely impaired. In addition, no other nation that defaulted on its sovereign debt ever enjoyed two key features of the U.S.
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