Macroeconomic and Financial Imbalances and Spillovers: Workshop review

On 8 and 9 June, ADEMU held a workshop on Macroeconomic and Financial Imbalances and Spillovers as part of the Barcelona GSE Summer Forum. The annual event of the Barcelona GSE Summer Forum attracts leading economists from around the world to debate the frontier of knowledge in Economics. The ADEMU workshop that took place as part of this event examined the following issues:

How do fiscal and financial shocks propagate from one country to another?

What are the implications of this for the conduct of fiscal policy in EU countries?

The two day workshop saw 12 researchers presenting their work in this area, which led to further discussion with the participants. The event involved participants and speakers from various banking groups as well as academic institutions.

The workshop ran as follows (all available presentations can be found below):

Day 1

“Debt Dilution and Firm Investment”
Joachim Jungherr (IAE-CSIC and Barcelona GSE) with Immo Schott

Sebastiaan Pool (De Nederlandsche Bank) with Niels Gilbert


Galip Kemal Ozhan (University of St Andrews)

“Aggregate Demand Externalities in a Global Liquidity Trap”
Federica Romei (Stockholm School of Economics) with Luca Fornaro


Jae Sim (Federal Reserve Board) with Simon Gilchrist, Raphael Schoenle and Egon Zakrajsek


Andreas Lehnert (Federal Reserve Board) with David Aikman, Nellie Liang and Michele Modugn


Day 2

“Why have Interest Rates Fallen Far Below the Return on Capital?”
Magali Marx (Banque de France) with François Mojon and Benoit Velde

Leopold Zessner (Vienna Graduate School of Economics) with Michael Reiter


“Fiscal rules and the Sovereign Default Premium”
Leonardo Martinez (IMF) with Juan Carlos Hatchondo and Francisco Roch

“Debt Burden and the Interest Rate Response to Fiscal Stimulus: Theory and Cross-Country Evidence”
Daniel Murphy (University of Virginia Darden School of Business) with Jorge Miranda-Pinto, Kieran Walsh and Eric Young

Maarten de Ridder (University of Cambridge) with Damjan Pfajfar


Pablo Burriel (Bank of Spain) with Mario Alloza and Javier J. Pérez


Organiser Hugo Rodriguez commented that “apart from the quality and depth of the discussions, the main value that this workshop provided was the variety of topics covered. The event touched on the relationship between macroeconomic imbalances and financial intermediation, labor markets, inequality, firm investment, trade, as well as monetary and fiscal policy.” He concluded that the event was a great success which provided the unique opportunity for discussion in such a new area of research.