Both the financial and the euro crises, and their subsequent recessions, have raised many questions as to how fiscal policy should be conducted in times of crisis: in particular, when public and/or private over-borrowing call for restraint.

This ADEMU mini-conference, jointly organised by Luca Fornaro (CREi, UPF and Barcelona GSE), Timothy Kehoe (University of Minnesota and Federal Reserve Bank of Minneapolis) and Ramon Marimon (European University Institute and UPF-Barcelona), will gather some of the current research which analyses recent experience and provides new insights into how fiscal policy should be conducted in these situations, especially within a monetary union.

Sessions include Optimal Austerity with Timothy Kehoe, Juan Carlos Conesa (Stony Brook) and Kim Ruhl (Penn State); The Heterogeneous Effects of Government Spending: It’s All About Taxes, with Axelle Ferriere (EUI) and Gaston Navarro (Federal Reserve Board); On the risk of leaving the Euro, with Juan Pablo Nicolini (Federal Reserve Bank of Minneapolis and Universidad Torcuato Di Tella), Manuel Macera (Colorado State University) and Albert Marcet (IAE-CSIC, MOVE, ICREA, and Barcelona GSE); and Time Consistent Fiscal Policy in a Debt Crisis with Neele Balke and Morten Ravn (UCL).

Edward C Prescott (Arizona State University) will close the event with his lecture Fiat Value and the Theory of Value.

See the full program and register.