Johns Hopkins Expert: CBO Projection May Force Faster Debt Limit Resolution

Newswise — The Congressional Budget Office’s (CBO’s) projections released Wednesday that estimate the U.S. government might default on its debt between July and September may spur lawmakers to resolve the debt ceiling crisis faster, according to Johns Hopkins University macroeconomist Alessandro Rebucci, whose expertise is financial institutions and monetary policies.

“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.