[Michael Boskin] Some important lessons from California’s fiscal crises
Jul 30, 2012
STANFORD ― While central governments’ fiscal problems plague many economies, a parallel crisis is enveloping many subnational governments around the world. From Spain to China to the United States to Italy, these governments ― regions, states, provinces, cities, and towns ― face immense fiscal challenges. Higher levels of government are “on the hook” to bail out local insolvent governments, and may even suffer bond downgrades as a result; in Spain, Italy, and China, that role falls to the nation