Your Pain is Our Pain: The United States and the European Debt Crisis

Europe’s sovereign debt crisis had had, and continued to have, a profound effect on the transatlantic economy. But in the long run, the lasting effects of the sovereign debt in Europe were harder to discern. How were risks in Europe being channeled to the rest of the world, notably to the United States? This policy brief discusses both the near-term (cyclical) and potential long-term (structural) effects of the European debt crisis on the transatlantic economy.