Macro Musings

David Schleicher is a professor at Yale Law School, and as a returning guest to Macro Musings, he joins to talk about the historical role that the federal government has played in responding to state and local budget crises, including the municipal trllemma it faces. This trilemma says the federal government can only avoid two of the three following harms: (1) moral hazard for state budgets; (2) worsening recessions; (3) reducing future state and local infrastructure investment. Specifically, they discuss this trilemma as well as its implications for the COVID-19 crisis.   Transcript for the episode can be found here: https://www.mercatus.org/bridge/tags/macro-musings   David’s Twitter: @ProfSchleich David’s Yale profile: https://law.yale.edu/david-n-schleicher   Related Links:   *Stuck! The Law and Economics of Residential Stagnation* by David Schleicher https://www.yalelawjournal.org/article/stuck-the-law-and-economics-of-residential-stagnation   *Hands On! Part I: The Trilemma Facing the Federal Governmen