It has been 10 days since the US government shutdown came to an end. High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. And if the bond market were your guide, there would appear to be no lasting costs – the 10-year US Treasury yield dipped below 2.5 per cent this week for the first time since August.

Yet beneath the surface, Washington’s flirtation with a voluntary default has shaken confidence in American political institutions. There may be no immediate rival to the dollar as the world’s reserve currency.