Policy Note 2013/9 | October 2013

A New “Lehman Moment,” or Something Worse?

A Scenario of Hitting the Debt Ceiling

The United States entered the second week of a government shutdown on Monday, with no end to the deadlock in sight. The cost to the government of a similar shutdown in 1995–96 amounted to $2.1 billion in today’s dollars. However, the cost and broader consequences of today’s shutdown are not yet clear—especially since the US economy is in the midst of an anemic recovery from the biggest economic crisis of the last eight decades.

Related Publications

Publication Highlight

Working Paper No. 900
Functional Finance
A Comparison of the Evolution of the Positions of Hyman Minsky and Abba Lerner
Author(s): L. Randall Wray
January 2018

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