Flirting with Default: a new report from the Peterson Institute for International Economics

The Peterson Institute for International Economics just released a new collection of papers by independent economists exploring the consequences of sustained U.S. fiscal uncertainty on the national and global economy. This report, "Flirting with Default: Issues Raised by Debt Confrontations in the United States," was funded by a grant from the Peterson Foundation.

See the Wall Street Journal’s morning coverage of this new analysis here.

Major findings in the report include:

• Borrowing costs rise, investments fall
• Avoidable crises threaten fragile recovery
• Trade goals imperiled, position weakened
• U.S. Treasuries, dollar eroded
• International implications
• Increased cost to homeowners

Read the full summary of "Flirting with Default" here. The full report is available on PIIE's website.