Economic and financial crises can change the dynamics of federal relationships

Economic recession and soaring deficits in the wake of the recent fiscal and economic crisis do not only ask for intelligent fiscal policies but need also coordinated efforts in federal states in order to forego contradictory and inefficient fiscal reactions to the crisis. Dietmar Braun and Philipp Trein have investigated eleven federations to discover what extent the crisis has contributed to such confrontation and changes in federal relations.