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Economic Risks

How do political risks affect the economy?

Default Publication
Analysis
Martha Gimbel's testimony before the Senate Subcommittee on Fiscal Responsibility and Economic Growth
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Interactives
Deficits and Affordability Tool

This interactive tool allows you to explore the impact of federal deficits.
Default Publication
Reports
The Impact of Deficits on Costs for Households
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Reports
The Inflationary Risks of Rising Federal Deficits and Debt

Increases in federal debt add to the cost of living for households over time. A permanent 1%-of-GDP increase in the primary deficit results in a loss in household purchasing power of $300-1,250 per household.
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Analysis
The Effect of Monetary Policy Assumptions on Fiscal and Macroeconomic Analysis

One of the cornerstone assumptions in macroeconomic modeling is the reaction of the central bank to a policy shock. The political independence of the central bank has major impacts on how fiscal policy affects the economy.
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Reports
Political Risks to the U.S. Safe Harbor Premium

The US enjoys a safe harbor investment premium—a value that investors place on US safety, soundness and stability. Even a modest move in risk premia would have profound implications for the US.