Debt affordability.
Position | Brief article |
New research from the New England Public Policy Center at the Federal Reserve Bank of Boston explores ways to assess the affordability of state debt and uses those findings to offer guidance to states in examining their own debt burdens.
The report notes that the Great Recession magnified the tension states face in balancing their capital investment needs with their ability to meet debt service requirements given other priorities and obligations, raising the question of how states can gauge what level of debt is affordable.
The report highlights some considerations policymakers and analysts face when gauging state debt affordability, including how to define state debt and which metrics and approaches can help assess state debt burdens. It also offers recommendations to help policymakers assess...
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