Monetary and fiscal authorities have undertaken ambitious and innovative policy interventions in response to the recent financial crisis. To better understand the effects of these policies, the Banco de España organised a conference on "Interactions between monetary and fiscal policies", held in Madrid on February 25-26, 2010.
Questions of particular interest for the conference include the quantitative effects of monetary and fiscal policies and their interactions; monetary and fiscal policies in the context of a currency union; and long-run fiscal implications and exit strategies.
Invited speakers included Giancarlo Corsetti (EUI), Philip Lane (Trinity College), Eric Leeper (Indiana Univ.), Albert Marcet (LSE), Roberto Perotti (IGIER), and Volker Wieland (Goethe Univ. Frankfurt).
25 February 2010 - 26 February 2010
Madrid
Programme ( 407 KB )
Speakers
25 February
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- 08:30h - 10:45h
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Chair: José Luis Malo de Molina (Banco de España)
"Unfunded liabilities’ and uncertain fiscal financing"
(683 KB)
Troy Davig (Fed Kansas City), Eric Leeper (Indiana University) and Todd B. Walker (Indiana University)Discussant: Oscar J. Arce (CNMV). Discussant: Unfunded liabilities’ and uncertain fiscal financing
(358 KB)"Fiscal sustainability in a new keynesian model"
(294 KB)
Campbell Leith (University of Glasgow) and Simon Wren-Lewis (University of Oxford)Discussant: Javier Andrés (Universidad de Valencia). Dicussant: Fiscal sustainability in a new keynesian model
(251 KB)
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- 11:15h - 13:15h
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Chair: Christiane Nickel (European Central Bank)
"Keynesian government spending multiplier and spillovers in the euro area"
(2 MB)
Tobias Cwik (Goethe University, Frankfurt) and Volker Wieland (Goethe University, Frankfurt)"Fiscal multipliers and open economy spillovers in a model with labour turnover costs"
(261 KB)Ester Faia (Goethe University, Kiel IFW and CEPREMAP), Wolfgang Lechthaler (Kiel IFW) and Christian Merkl (Kiel IFW, Christian Albrechts University and IZA)./p>
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- 14:30h - 16:00h
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Chair: Juan Varela (Spanish Ministry of Economics)
"On ricardian equivalence and twin divergence: the spanish experience in the 2009 crisis"
(390 KB)
Miguel Cardoso (BBVA) and Rafael Domenech (BBVA and Universidad de Valencia)"Fiscal policy and external imbalances: a quantitative evaluation for Spain"
(417 KB)
Francisco Jimeno, Pablo Hernández de Cos and Juan Rojas (Banco de España)
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- 16:30h - 19:30h
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Chair: Eduardo Ley (World Bank)
"Fiscal shocks and the real exchange rate"
(358 KB)
Philipp Lane (Trinity College Dublín)Discussant: Davide Furceri (OECD). Discussant: "Fiscal shocks and the real exchange rate"
(264 KB)"On the international dimension of fiscal policy"
(273 KB)
Gianluca Benigno (London School of Economics, CEP and CEPR) and Bianca de Paoli (Bank of England and London School of Economics)Discussant: Hubert Kempf (Banque de France). Discussant: "On the international dimension of fiscal policy"
(21 KB)"Monetary policy matters: new evidence based on a new shock measure"
(292 KB)
S. Mahdi Barakchian (Cambridge University) and Christopher Crowe (IMF)
(268 KB)26 February
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- 08:30h - 10:30h
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Chair: Karsten Wendorff (Deutsche Bundesbank)
"When, where and how does fiscal stimulus work?"
(254 KB)
Giancarlo Corsetti (EUI, Florence), Gernot Müller (University of Bonn and CEPR) and André Meier (IMF)"Insulation impossible: fiscal spillovers in a monetary union"
(608 KB)
Russell Cooper (University of Texas), Hubert Kempf (Banque de France) and Dan Peled (University of Haifa)
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- 11:00h - 13:00h
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Chair: José María Labeaga (Institute for Fiscal Studies, Madrid)
"Optimal fiscal policies. Long bonds and interest rate policy under incomplete markets"
(278 KB)
Elisa Faraglia (Institut d’Anàlisi Econòmica, CSIC), Albert Marcet (London School of Economics) and Andrew Scott (London Business School)"Optimal fiscal and monetary response to financial shocks"
(588 KB)
Harris Dellas (University of Bern), Behzad Diba (Georgetown University) and Olivier Loisel (Banque de France)
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- 13:15h - 14:00h
- Chair: José Luis Malo de Molina (Banco de España)
