01129nam a22001217a 4500008004100000100004100041245011700082260004700199300003800246520060600284650007100890773004600961210727b           ||||| |||| 00| 0 eng d  aDouglas, James W. and Raudla, Ringa   aWhat is the remedy for state and local fiscal squeeze during the covid-19 recession? More debt, and that is okay  aAmerican Review of Public Administration    a50(6-7), Aug-Oct, 2020: p.584-589  aThe COVID-19 crisis is placing a tremendous fiscal squeeze on state and local governments in the United States. We argue that the federal government should increase its deficit to fill in the fiscal gap. In the absence of sufficient federal assistance, we recommend that states suspend their balanced budget rules and norms and run deficits in their operating budgets to maintain services and meet additional obligations due to the pandemic. A comparison with Eurozone countries shows that states have more than enough debt capacity to run short-term deficits to respond to the crisis. – Reproduced   aPublic debt, Public deficits, Balanced budget norms, Fiscal crisis  aAmerican Review of Public Administration