“The new CBO projections could actually contribute to a faster resolution of this political issue by shortening the leash on the ongoing negotiation,” said Rebucci. “CBO projections are extremely useful to force a constructive economic and political debate on U.S. fiscal policy, both on the immediate need to resolve the debt limit impasse and the long-standing issue of putting the U.S. government finances on a more sustainable footing.”
Rebucci is an associate professor in the Johns Hopkins Carey Business School and Department of Economics.