The Future of Federalism
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The Future of Federalism

Intergovernmental Financial Relations in an Age of Austerity

Edited by Richard Eccleston and Rick Krever

The crisis and its aftermath had a dramatic short-term effect on federal relations and, as the twelve case studies in this volume show, set in place a new set of socio-political factors that are shaping the longer-run process of institutional evolution and adaptation in federal systems. This illuminating book illustrates how an understanding of these complex dynamics is crucial to the development of policies needed for effective and sustainable federal governance in the twenty-first century.​
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Chapter 3: The financial crisis and the future of federalism in Canada

Douglas M. Brown

Abstract

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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