US Risks Fiscal Crisis After Soaring Borrowing, Blanchard Warns

  • Former IMF chief economist worried about attitude to deficits
  • Blanchard typically takes more relaxed view on borrowing
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The US is in danger of a fiscal crisis erupting after a ballooning in deficits in recent years, according to Olivier Blanchard, a senior fellow at the Peterson Institute for International Economics.

Blanchard, a former International Monetary Fund chief economist who typically has a more relaxed fiscal stance, said he is concerned about the attitude in Washington to eye-watering US government deficits.