Mark Thoma is worried that the eventual debt ceiling deal will hurt the recovery:
I think we are headed for budget cuts that are larger than the economy can handle as it struggles to climb back to full employment. The short-run deficit fears are overblown, and the consequences of cutting too much, too fast are not being taken seriously enough, but it's hard to see another outcome.
The British example is, so far, discouraging. Stagflation looms.
The Dish 