The constitutions of numerous states require municipalities to obtain electoral approval prior to issuing debt. When the electorate rejects debt proposals, however, officials may proceed with the proposed project through an alternative financing mechanism that does not require a vote. There are...

States have traditionally offered support to their fiscally distressed municipalities. When less intrusive forms of assistance fail to bring stability, some states employ supervisory institutions that exercise approval authority over local budgets or, more intrusively, that displace locally...

This essay draws on historical and current examples to examine the extent to which public creditors can enhance democracy by monitoring public officials in a manner that compansates for the failures of the government-debtor's constituents to monitor public officials. Creditors and constituents...