Because all federal spending and taxes must be approved by both houses of Congress and the executive branch, a separate debt ceiling that has to be increased periodically creates unneeded uncertainty and can potentially lead to worse fiscal outcomes.
Responses
© 2025. Kent A. Clark Center for Global Markets.
5%
5%
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3%
3%
47%
37%
Responses weighted by each expert's confidence
© 2025. Kent A. Clark Center for Global Markets.
0%
2%
0%
43%
54%
Participant |
University |
Vote |
Confidence |
Bio/Vote History |
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 Daron Acemoglu |
MIT | Bio/Vote History | ||
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 Alberto Alesina |
Harvard | Did Not Answer | Bio/Vote History | |
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 Joseph Altonji |
Yale | Bio/Vote History | ||
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 Alan Auerbach |
Berkeley | Bio/Vote History | ||
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 David Autor |
MIT | Bio/Vote History | ||
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The question contains its own answer.
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 Katherine Baicker |
University of Chicago | Bio/Vote History | ||
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 Marianne Bertrand |
Chicago | Bio/Vote History | ||
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 Raj Chetty |
Harvard | Bio/Vote History | ||
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 Judith Chevalier |
Yale | Bio/Vote History | ||
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 Janet Currie |
Princeton | Bio/Vote History | ||
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 David Cutler |
Harvard | Bio/Vote History | ||
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 Angus Deaton |
Princeton | Bio/Vote History | ||
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It does indeed provide some brake on long-term spending, but there has to be a better way.
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 Darrell Duffie |
Stanford | Bio/Vote History | ||
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This is a second chance to gridlock. A budget passed by Congress already authorizes the necessary funding.
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 Aaron Edlin |
Berkeley | Bio/Vote History | ||
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 Barry Eichengreen |
Berkeley | Bio/Vote History | ||
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 Ray Fair |
Yale | Bio/Vote History | ||
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 Pinelopi Goldberg |
Yale | Bio/Vote History | ||
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 Claudia Goldin |
Harvard | Bio/Vote History | ||
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 Austan Goolsbee |
Chicago | Bio/Vote History | ||
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OBVIOUSly
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 Michael Greenstone |
University of Chicago | Bio/Vote History | ||
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 Robert Hall |
Stanford | Bio/Vote History | ||
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This is a question about the behavior of members of Congress. I don't see how an economist could have any expertise on this.
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 Bengt Holmström |
MIT | Bio/Vote History | ||
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 Caroline Hoxby |
Stanford | Did Not Answer | Bio/Vote History | |
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 Kenneth Judd |
Stanford | Bio/Vote History | ||
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In the past, it was not acceptable for legislators to create the disruption from blocking a debt increase. Even RR disapproved.
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 Anil Kashyap |
Chicago Booth | Bio/Vote History | ||
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Deciding whether or not to pay the debts incurred to fund the previously approved tax and spending is nuts.
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 Pete Klenow |
Stanford | Bio/Vote History | ||
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It sure looks like it's been adding uncertainty lately (e.g. 2011). But it could conceivably be a force for good.
-see background information here -see background information here |
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 Jonathan Levin |
Stanford | Bio/Vote History | ||
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Might not have given the same answer two years ago, but at this point, seems hard to disagree.
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 Eric Maskin |
Harvard | Bio/Vote History | ||
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 William Nordhaus |
Yale | Bio/Vote History | ||
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 Maurice Obstfeld |
Berkeley | Bio/Vote History | ||
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 Emmanuel Saez |
Berkeley | Bio/Vote History | ||
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 José Scheinkman |
Columbia University | Bio/Vote History | ||
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 Richard Schmalensee |
MIT | Bio/Vote History | ||
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Just read the paper.
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 Hyun Song Shin |
Princeton | Bio/Vote History | ||
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 Nancy Stokey |
University of Chicago | Bio/Vote History | ||
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 Richard Thaler |
Chicago Booth | Bio/Vote History | ||
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The debt ceiling is a dumb idea with no benefits and potentially catestrophic costs if ever used.
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 Christopher Udry |
Northwestern | Bio/Vote History | ||
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 Luigi Zingales |
Chicago Booth | Bio/Vote History | ||
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It can also lead to potential better outcomes
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