Scholarly Comments on Academic Economics

How and Why a U.S. Sovereign Debt Crisis Could Occur

by

Abstract

A U.S. sovereign debt crisis is a remote possibility, but in our increasingly fragile system it could be triggered by a number of financial catastrophes—from a chaotic break-up of the Euro system to something as adventitious as a serious earthquake in California. The most likely source of a U.S. sovereign debt crisis, however, is a failure of the U.S. political system to address the growth of the major entitlement programs—Social Security, Medicare and Medicaid. That possibility is discussed in this paper.

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Volume (Issue)
Pages
71-77
Published
JEL classification
G01, H63
Keywords
sovereign debt crisis, financial crisis
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