Banco de Espana and the Barcelona GSE
Over the week of 6-10 June 2016, the Banco de Espana and the Barcelona Graduate School of Economics will organize a Joint Policy Week on the theme of "Fiscal Sustainability, XXI Century". The Joint Policy Week will consist of two events:
- Banco de Espana Conference: Mon. 6 June - Weds. 8 June, Madrid
- BGSE Summer Forum Workshop: Thurs. 9 June - Fri. 10 June, Barcelona
OVERVIEW: The study of fiscal sustainability was traditionally a central issue in macroeconomics. However, it has not been at the core of research for the last few decades, when macroeconomic models have been predicated on the assumption that default never occurs. The issue of sovereign risk or debt default was usually neglected, except in the context of emerging economies. However, the European debt crisis and sovereign risk have been key ingredients of the Great Recession, and excessive debt and deficits are under discussion in the US. Therefore, it is back to the future with fiscal sustainability in academic research, and in European policy-making.
The Policy Week is intended to bring together current academic work with policy discussion. The event at BGSE, which forms part of the fourth BGSE Summer Forum, intends to collect the best academic work on the issue. The event in Madrid will focus on empirical and theoretical contributions with a strong policy content, and will include some panel discussions. This should allow comparison of a range of fiscal options that could make monetary and banking union sustainable, emphasizing recent Eurozone reform proposals.
TOPICS: We encourage the submission of research papers on the following topics in the context of supranational or subnational unions that share a single currency:
- Defining and measuring fiscal sustainability; role of implicit, unfunded, or contingent liabilities
- Deficit bias, moral hazard, credibility of rules and institutions
- Fiscal and monetary policy in models with default
- Fiscal and monetary policy in a monetary and banking union
- Monitoring compliance with fiscal rules; delegation of fiscal instruments
- Debt brakes, automatic stabilizers
- Which fiscal instruments should be controlled at which levels of government?
- Coordination of fiscal policies across and within countries
- Fiscal and political economy implications of speculative attacks, defaults, and rescues
- Public debt resolution mechanisms
- Fiscal-financial backstops; fiscal backing for monetary union and/or banking union
- Interactions between monetary, fiscal, and/or financial stability policies
PAPER SUBMISSION PROCEDURE: Submissions will be accepted by email at firstname.lastname@example.org until February 29 2016. Authors of accepted papers will be notified by the end of March 2016. Submission of papers is preferred, but extended abstracts may also be considered.
Presenters and discussants in either the Madrid conference or the Barcelona workshop are welcome to attend both events. No papers will be repeated in the two venues. Submissions should specify a preferred event (either BGSE or BdE), although the committee may redirect papers to the other event in order to improve the fit.
WORKSHOP ORGANIZERS/SCIENTIFIC COMMITTEE:
Roel Beetsma, University of Amsterdam
James Costain, Banco de Espana
Julio Escolano, International Monetary Fund
Juan Francisco Jimeno, Banco de Espana
Albert Marcet, Institut d'Analisi Economica, ICREA, UAB, MOVE and BGSE
Hannes Mueller, Institut d'Analisi Economica and BGSE
Juan Pablo Nicolini, Institut d'Analisi Economica, Minneapolis Fed, U. di Tella
Francesc Obiols-Homs, Universitat Autonoma de Barcelona and BGSE
Javier J. Perez, Banco de Espana
Banco de Espana: http://www.bde.es/investigador/en
Barcelona GSE Summer Forum: http://www.barcelonagse.eu/summer-forum