Federal structures enhance state decision-making in fiscal policy, challenging common assumptions.
The article explores how federal structures affect fiscal policy-making in different countries. It challenges the idea that federal systems limit a state's ability to coordinate fiscal policies. The researchers studied four country cases to see if federal structures hinder or enhance decision-making in fiscal policy. They found that federal systems can actually improve a state's capacity to manage its finances. This research is valuable for anyone interested in understanding how federalism impacts fiscal policy and macroeconomic management.