Fiscal Malaise

The fact that U.S. fiscal policy has moved out of the media spotlight is both good news and bad news, writes CFR’s Robert Kahn on his blog “Macro and Markets.” While it's good there is some general optimism that the next round of fiscal cliffs will be navigated with little disruption to the economy, the growing pessimism about the chances of a grand fiscal bargain is discouraging. Kahn highlights several factors that might be contributing to this dynamic, including a better economic backdrop and debt limit fatigue.