Still Some Hurdles On The Fiscal Path  Martine
GuerguilBy Martine Guerguil      Transitions to Financial
Stability: A Bumpy Ride  GFSRBy José Viñals    So what are these
transitions?    Advanced Economies Strengthening, Emerging
Market Economies Weakening  WEOBy Olivier Blanchard  (Versions
in عربي, 中文Français日本語, Русский, and Español)  The issue
probably foremost on everyone’s mind, is the fiscal situation in
the United States, and its potential implications.  While the
focus is on the shutdown and the debt ceiling,  we should not
forget the sequester, which is leading to a fiscal consolidation
this year which is both too large and too arbitrary. The
shutdown is yet another bad outcome, although one which, if it
does not last very long, has limited economic consequences.  
Failure to lift the debt ceiling would, however, be a game
changer.  Prolonged failure would lead to an extreme fiscal
consolidation, and surely derail the U.S. recovery. But the
effects of any failure to repay the debt would be felt righ