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Should the federal government bail out the states? Lessons from past recessions


Abstract: Like the economy in general, individual state economies are struggling in this recession. State governments face significant constraints in raising additional revenues. Most states are required to balance their budgets regardless of the economic environment. This article considers the role of the federal government in helping the states to manage their finances.

Keywords: state finances; Federal government;

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Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2009

Issue: Aug

Order Number: 265