Part 1: Introduction

The readings for Part 1 discuss trends in U.S. government budget deficits and debt and the strength of U.S. capital markets relative to those in Europe and Asia.

1. Chapter 1, 2, and 4:
   "Deficits, Debt and Looming DisasterMichael Pakko, The Regional Economist, Federal Reserve Bank of St. Louis, January 2009, 4-9.

2. Chapter 2:
   "Evaluating the Relative Strength of the U.S. Capital Markets Stavros Peristiani, Current Issues in Economics and Finance 13(6), Federal Reserve Bank of New York, June 2007.