Thursday, September 17, 2020
Darien Shanske (UC-Davis) & David Gamage (Indiana), How the Federal Reserve Should Help States and Localities Right Now, 96 Tax Notes State 765 (May 11, 2020):
This essay explains how and why the Federal Reserve could support state and local governments during the COVID-19 emergency to prevent drastic spending cuts.
It is not too late for the Federal Reserve to act to head off debilitating state and local budget cuts. It acted boldly to rescue systemically important entities during the Great Recession. State and local government spending programs are at least as important during this pandemic, and the Federal Reserve should step in to save them.