Even 10 years after the start of the global financial crisis, and seven years after the beginning of the European sovereign debt crisis, large stocks of government debt remain a significant concern in advanced as well as developing countries. A major objective of the ADEMU project is to contribute to the scientific discussion on the future design of European institutions to deal with financial stability and debt sustainability.
On 5 and 6 April 2018, as part of the Horizon 2020 ADEMU Project, the Toulouse School of Economics will be hosting a conference to discuss frontier research on all matters relating to the debt sustainability, with a specific eye on the challenges of institutional design for sovereign debt within the European Monetary Union. Our objective is to bring together leading academics and policy makers to showcase frontier academic work that enhances our understanding of sovereign debt sustainability in general and the context of the European sovereign debt crisis in particular, identifying open questions in research, policy making, and institutional design along the way.
We are broadly interested in submissions that contribute to a better understanding of the factors that determine the (non-)sustainability of government debt, countries’ repayment incentives, as well as institutional design and the role of government debt in financial markets. Contributions to the following topics are of particular, though not exclusive, interest for the conference:
- Theoretical and empirical studies on debt sustainability, repayment incentives, and the costs of default
- Sovereign debt within a monetary union: interactions of fiscal and monetary policy
- Doom loops: the relation of household debt, bank debt and government borrowing
- Competing views of sovereign debt crises: Liquidity or Roll-Over risk vs. moral hazard and unsustainable fiscal policies?
- How to deal with euro area debt overhang problem?
- Institutional design: solidarity or discipline?
- The political economy of sovereign debt and default
- The international finance view on country risk premia and default risk
- Historical perspectives: what does the past of sovereign lending suggest for the future?
We are inviting submissions and extended abstracts to be submitted by 20 December 2017 to firstname.lastname@example.org (Subject: ADEMU Sovereign Debt Conference)
- Christian Hellwig (Toulouse School of Economics)
- Giancarlo Corsetti (University of Cambridge)
- Tim Kehoe (University of Minnesota)