Michael Spence says recent worldwide market volatility is the result of weak economic fundamentals and disappointing policy responses.

With markets rattled by the downgrade of U.S. debt, some experts fear running out of policy tools to prevent another global recession, while others are calling on government and central banks to improve fiscal and monetary policy coordination.

Obama's Remarks on the U.S.' Credit Rating, August 2011

U.S. lawmakers' brinkmanship over raising the debt ceiling could have prompted a series of moves--the downgrading of U.S. debt by Standard and Poor's being one--that could cause a selloff of U.S. securities and an end to the primacy of the dollar, writes CFR's Francis Warnock.

In this research update, Standard & Poor's explains their rationale behind lowering the long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirming the 'A-1+' short-term rating.

A tumultuous week in global markets that saw major indexes plunge aroused concerns of a double-dip recession driven by U.S. economic lethargy and the European Union's resurgent sovereign debt crisis.

Despite global market fears of a U.S. credit downgrade, U.S. treasuries will remain the safest bet for international investors, says global economics expert Kent Hughes.

While a last-minute deal was able to raise the U.S. debt ceiling ahead of default, global investors are frustrated by the unnecessary brush with crisis and by the culture of U.S. political brinkmanship. The long-term impact on U.S. treasuries is unclear.

As partisan wrangling over the U.S. debt ceiling continues in Washington, fears are mounting that a default could trigger another global economic crisis. This guide offers timely analysis on the global implications of the U.S. debt crisis.

Sebastian Mallaby is unconvinced by the thesis of Jeff Madrick's Age of Greed, a history of American banking since the 1970s.

A tentative agreement on raising the debt ceiling falls far short of the deep reforms needed to improve U.S. spending patterns and the country's global standing, writes CFR's Sebastian Mallaby.

Whatever the outcome of the debt ceiling debate, many analysts expect a downgrade in the U.S. debt rating because of doubts about deficit-reduction plans. The fallout could include higher borrowing costs, a weaker dollar, and market turbulence.

A protracted debt default would have serious global repercussions, but even without a default, a likely downgrade of U.S. debt and the absence of a fiscal reform plan are weakening the U.S. and unsettling world markets, says economist Uri Dadush.

In his piece for The New Yorker, James Surowiecki argues that instead of figuring out ways to raise the debt ceiling, Congress should simply go ahead and abolish it.

David S. Abraham and Meredith Ludlow argue, "...Congress' implication that the United States may not repay its debt unless the government restructures domestic spending is undermining American interests in Asia."

Sebastian Mallaby suggests that the European Central Bank could stem contagion by taking a cue from the Federal Reserve.

While Congress is likely to raise the U.S. debt ceiling ahead of the August 2 deadline, lawmakers will still need to hash out a long-term deficit-reduction package to avoid market disruption and preserve U.S. global standing, says economist C. Fred Bergsten.