Mass. Economist Predicts Slow Rebound

Massachusetts says it has managed to ease its short-term cash flow problems. This, after the state treasury sold $750 million worth of what are called "revenue anticipation notes" yesterday.

This means that, in order to meet its spending needs now, the state has borrowed money based on what it expects to earn in taxes and other revenues in the second half of the fiscal year.

The deal was reached on the same day that Treasurer Tim Cahill announced the state pension fund's value fell by almost four billion dollars last month.

How do such short term developments affect economic recovery in the long term?

To consider that question, WBUR's Bob Oakes turns to Alan Clayton-Matthews. He's an economist and professor of public policy at UMass-Boston.