The looming threat of the U.S. defaulting on its debt has prompted many to discuss what the consequences might be here. But what happens to the rest of the world if the U.S. defaults? According to the International Monetary Fund, it will be a disaster. At a press conference yesterday, IMF chief Christine Lagarde called a U.S. default “a very, very, very serious event, not just for the U.S., but the global economy at large.” Gian-Maria Milesi-Ferretti, assistant director for the western hemisphere department of the IMF, speaks about the necessity of avoiding default and how the U.S. can do it.
The story you just read is available to read for free because thousands of listeners and readers like you generously support our nonprofit newsroom. Every day, the reporters and producers at The World are hard at work bringing you human-centered news from across the globe. But we can’t do it without you: We need your support to ensure we can continue this work for another year.
When you make a gift of $10 or more a month, we’ll invite you to a virtual behind-the-scenes tour of our newsroom to thank you for being with The World.