An “unthinkable” U.S. public debt default
The nominal debt ceiling is a crude and rudimentary barrier against excess public debt in the United States. Hope remains that the White House and Republicans will reach a deal on raising the debt ceiling in time to avoid what Secretary Yellen called "unthinkable" and "catastrophic". Some framework to deal with fiscal matters is needed, instead of nominal spending caps. But this transition need not happen via financial shocks and a possible default on public debt.