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ADEMU Conference: How much of a fiscal union for the EMU

1819 May 2017
Banco de España, Madrid

Information

On 18th and 19th May, ADEMU and the Banco de España, in conjunction with the European Stability Mechanism and the International Monetary Fund, hosted a conference to examine the role of a fiscal union in the European Monetary Union (EMU).

During the conference, held at the Banco de España Madrid headquarters, 57 international economists, lawyers, social scientists and researchersOpens in a new window presented research and findings into the need for a fiscal union and discussed the future of the euro area.

Participants discussed their own research alongside the EC’s current proposals for the EMU, detailed in its White Paper on the Future of EuropeOpens in a new window. In the paper, the EC suggests five suggested outcomes: 1) carrying on; 2) nothing but the single market; 3) those who want more do more; 4) doing less more efficiently, and 5) doing much more together.

More information

Presentations

18 May 2017
 
08.30 - 09.00
Registration
09.00 - 09.15
Welcome to the Banco de España

Juan Francisco Jimeno | Banco de España

The aim of this ADEMU conference File PDF: Opens in a new window (95 KB)
Ramon Marimon | European University Institute
The aim of this ADEMU conference. Presentation File PDF: Opens in a new window (1 MB)

09.15 - 10.45
On monetary policy, fiscal policy, and private finance interaction

Chair: Rodolphe Blavy | International Monetary Fund

“Monetary-fiscal interactions and the euro-area’s malaise” File PDF: Opens in a new window (417 KB)
Marek Jarociński | European Central Bank
Bartosz Mackowiak* | European Central Bank
"Monetary-fiscal interactions and the euro-area's malaise". Presentation File PDF: Opens in a new window (314 KB)

Discussant: Jean-Pierre Danthine | Paris School of Economics

“Aggregate Demand Externalities in a Global Liquidity Trap” File PDF: Opens in a new window (464 KB)
Luca Fornaro | CREI & Universitat Pompeu Fabra
Federica Romei* | Stockholm School of Economics
"Aggregate Demand Externalities in a Global Liquidity Trap". Presentation File PDF: Opens in a new window (291 KB)

Discussant: Alessandro Barattieri | Collegio Carlo Alberto and ESG UQAM
Alessandro Barattieri. Presentation File PDF: Opens in a new window (298 KB)

10.45 - 11.15
Coffee break
11.15 - 12.45
On emu fiscal rules

Chair: Árpád Ábrahám | European University Institute

“Fiscal rules, bailouts, and reputation in Federal governments” File PDF: Opens in a new window (564 KB)
Alessandro Dovis* | University of Pennsylvania
Rishab Kirpalani | New York University
"Fiscal rules, bailouts, and reputation in Federal governments". Presentation File PDF: Opens in a new window (284 KB)

Discussant: Charles Brendon | University of Cambridge
Alessandro Dovis. Presentation File PDF: Opens in a new window (166 KB)

“The political economy of fiscal transparency and independent fiscal councils”
Roel Beetsma* | Universiteit van Amsterdam
Xavier Debrun | International Monetary Fund
Randolph Sloof | Universiteit van Amsterdam
"The political economy of fiscal transparency and independent fiscal councils". Presentation File PDF: Opens in a new window (402 KB)

Discussant: Carlos Mulas Granados | International Monetary Fund
Carlos Mulas Granados. Presentation File PDF: Opens in a new window (3 MB)

12.45 - 14.00
Policy panel “Are current fiscal rules credible? What is the role of fiscal rules and of independent fiscal councils?”

Chair: Päivi Leino-Sandberg | UEF Law school and European University Institute

Introduction: Are Fiscal Policy Rules Part of the Solution or the Problem?
Matthias Goldmann | Goethe University Frankfurt
Matthias Goldmann Are Fiscal Policy Rules Part of the Solution or the Problem?. Presentation File PDF: Opens in a new window (466 KB)

Panel participants:
José Luis Escrivá | AIReF
Frans van Nispen | Erasmus University Rotterdam

René Smits | University of Amsterdam
René Smits. Presentation File PDF: Opens in a new window (108 KB)

14.00 - 15.00
Lunch
15.00 - 16.30
On risk sharing (new ADEMU results) & policy reforms

Chair: Pedro Teles | Universidade Católica Portuguesa

“On the design of a European Unemployment Insurance Mechanism” File PDF: Opens in a new window (639 KB)
Árpád Ábrahám* | European University Institute
João Brogueira de Sousa* | European University Institute
Ramon Marimon* | European University Institute
Lukas Mayr* | European University Institute
"On the design of a European Unemployment Insurance Mechanism". Presentation File PDF: Opens in a new window (654 KB)

“On the optimal design of a Financial Stability Fund” File PDF: Opens in a new window (729 KB)
Árpád Ábrahám* | European University Institute
Eva Cárceles-Poveda | SUNY at Stony Brook
Yan Liu | Wuhan University
Ramon Marimon* | European University Institute
"On the optimal design of a Financial Stability Fund". Presentation File PDF: Opens in a new window (607 KB)

“Attitudes Towards Institutional Reforms For The Euro Area”
Matthias Dolls* | ZEW Mannheim and IZA
Nils Wehrhöfer* | ZEW Mannheim and University of Mannheim
"Attitudes Towards Institutional Reforms For The Euro Area". Presentation File PDF: Opens in a new window (702 KB)

Discussants:
Paolo Pasimeni | European Commission
Tuomas Saarenheimo | Finnish Ministry of Finance

16.30 - 17.00
Coffee break
17.00 - 18.30
Policy panel “A Treasury for the Banking Union?”

Chair: Xavier Vidal-Folch | EL PAIS

Introduction
Martin Hellwig | Max Planck Institute
Martin Hellwig. Presentation File PDF: Opens in a new window (70 KB)

Panel participants:
Thomas Cooley | New York University – Stern Business School
Isabel Correia | Bank of Portugal
Federico Fabbrini | Dublin City University
Thomas Wieser | Euro Group Working group

18 May 2017
 
20.30
Conference dinner (by invitation only)
19 May 2017
 
09.00 - 10.30
On the EMU and fiscal federalism

Chair: Tomasz P. Wozniakowski | LMU Munich

“Hamilton’s paradox revisited: lessons from the euro area” File PDF: Opens in a new window (616 KB)
Waltraud Schelkle* | London School of Economics
"Hamilton's paradox revisited: lessons from the euro area". Presentation File PDF: Opens in a new window (338 KB)

Discussant: Johannes Fleck | European University Institute

“Fiscal delegation in a monetary union: Instruments assignment and stabilization properties” File PDF: Opens in a new window (823 KB)
Henrique Basso* | Banco de España
James Costain* | Banco de España
"Fiscal delegation in a monetary union: Instruments assignment and stabilization properties". Presentation File PDF: Opens in a new window (1 MB)

Discussant: Andreja Lenarčič | European Stability Mechanism
Andreja Lenarčič. Presentation File PDF: Opens in a new window (302 KB)

10.30 - 11.00
Coffee break
11.00 - 12.30
On sovereign debt and stabilization policies

Chair: Aitor Erce | European Stability Mechanism

“Sovereign Default Risk and Firm Heterogeneity” File PDF: Opens in a new window (631 KB)
Cristina Arellano* | Federal Reserve Bank of Minneapolis
Yan Bai | University of Rochester
Luigi Bocola | Northwestern University
"Sovereign Default Risk and Firm Heterogeneity". Presentation File PDF: Opens in a new window (425 KB)

Discussant: Christian Hellwig | Toulouse School of Economics
Christian Hellwig. Presentation File PDF: Opens in a new window (78 KB)

“When Ramsey Searches for Liquidity”
Wei Cui* | University College London

Discussant: Chima Simpson-Bell | European University Institute
Chima Simpson-Bell. Presentation File PDF: Opens in a new window (129 KB)

12.30 - 13.30
Policy panel “Debt overhang and stabilization policies”

Chair: Thomas Cooley | New York University – Stern Business School

Introduction: “A safe sovereign asset for the Eurozone?” File PDF: Opens in a new window (1 MB)
Ad van Riet | European Central Bank

Panel participants:
Jeffrey R. Franks | International Monetary Fund, European Division
Svend E. Hougaard Jensen | Copenhagen Business School
Svend E. Hougaard Jensen. Presentation File PDF: Opens in a new window (170 KB)

Jean-Marc Fournier| OECD
Jean-Marc Fournier. Presentation File PDF: Opens in a new window (425 KB)

Rolf Strauch | European Stability Mechanism
Rolf Strauch. PresentationOpens in a new window

13.30 - 14.30
Lunch
14.30 - 15.45
On a fiscal union for the EMU

Chair: Juan Francisco Jimeno | Banco de España

“Fiscal Unions” File PDF: Opens in a new window (1 MB)
Emmanuel Farhi* | Harvard University
"Fiscal Unions". Presentation File PDF: Opens in a new window (3 MB)

Discussant: Rody Manuelli | Washington University in St. Louis
Rody Manuelli. Presentation File PDF: Opens in a new window (271 KB)

“Beyond the Five Presidents’ Report”
Marco Buti* | European Commission
Marco Buti. Presentation File PDF: Opens in a new window (929 KB)

15.45 - 16.00
Coffee Break
16.00 - 17.30
Policy panel “How much of a fiscal union for the EMU? Has the answer to this, and related questions regarding the EMU fiscal and monetary framework, changed after 2016?”

Chair: Martin Sandbu | Financial Times

Panel participants:
Joaquín Almunia | Former Vice President of the European Commission
Joaquín Almunia. Presentation File PDF: Opens in a new window (110 KB)

José Manuel Campa |Banco Santander
Ana Gouveia | Portuguese Ministry of Finance
Ana Gouveia. Presentation File PDF: Opens in a new window (454 KB)

Javier Pérez | Banco de España
Javier Pérez. Presentation File PDF: Opens in a new window (504 KB)

Guido Tabellini | Bocconi University
Guido Tabellini. Presentation File PDF: Opens in a new window (43 KB)

CONCLUDING REMARKS

Organizing Committee:
Aitor Erce | European Stability Mechanism
Jeffrey R. Franks | European Division, International Monetary Fund
Juan Francisco Jimeno | Banco de España
Ramon Marimon | European University Institute, UPF, Barcelona GSE; Chair
Pedro Teles | Universidade Católica Portuguesa

* Participating author(s)