US: rather some fiscal austerity than a default

In the current debate about raising the federal debt ceiling, the political dimension predominates. Each camp is tempted to go to the edge of the precipice, hoping that the adversary will cave in first. Neither controls all the parameters of this chicken game and an accident cannot be ruled out. The economic dimension should not be overlooked either. To date, the US economy has absorbed 500bp of policy rate hikes without falling into recession, but also without inflation returnin...