Benzoni, Luca; Wernick, Marisa - 2025 - This draft: May 27, 2025
We examine the 2025 U.S. debt limit episode through the lens of financial markets. First, we document an increase in … subsequent months to the current 1.1% level. Overall, these estimates are well below the default risk estimates for the debt-limit … that debt-limit events can have for the level of bank reserves at the Federal Reserve, and their implications for money …