Chapter 3: The financial crisis and the future of federalism in Canada
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This chapter provides an overview of the distinctive features of Canadian federalism before outlining the impact of the 2008–9 financial crisis on the Canadian economy and federalism. The chapter documents the high levels of intergovernmental cooperation in relation to the national stimulus programme that followed the crisis, confounding those who argue that high levels of decentralization in the Canadian federation hinder national policy coordination. The chapter argues that federalism in Canada can be characterized more by continuity than change in the years following the crisis, while noting that mounting fiscal pressures have the potential to contribute to intergovernmental conflict.

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