Read it at Multiplier Effect
Back in 2009 Martin Shubik sketched out a plan in a Levy Institute policy note for creating a “Federal Employment Reserve Authority“—a kind of Fed for employment (yes, I know: the Federal Reserve is the “Fed for employment.” But you don’t need to look very hard to see that the sides of the dual mandate aren’t equally weighted). Among other things, the FERA would maintain state branches that are charged with keeping updated and prioritized lists of potential public works projects (with a preference for self-liquidating projects) and providing constant monitoring and evaluation so that financing can be put in place as soon as unemployment reaches a particular trigger level in that region. Regional public investment would respond to objective employment conditions.
The “Shovel Ready” Excuse and a Fed for Public Works?
by Michael Stephens