workshop logo pic


Workshop on

Sovereign Risk, Fiscal Solvency and Monetary Policy:

Where Do We Stand?


San Servolo Island, Venice

October 4-5, 2012

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Official web-page

Program

Information on registration: Listeners
(note: speakers are automatically registered)

Information on accommodation: San Servolo - Venice
(note: the supply of rooms on the San Servolo island is limited)

How to get to San San Servolo
(note: just interpret "Venice International University" (VIU) as San Servolo)

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       The Eurozone sovereign debt crisis, the latest phase of the global crisis which started in 2007, has been triggered by strong interactions between global financial instability and structural macroeconomic weaknesses of distressed countries. Increased global financial volatility has been the major driver of intense contagion effects, which explain why euro area countries with weak fundamentals were initially shielded by and then exposed to financial markets volatility. It has also widened the set of structural and macroeconomic conditions which markets look at to assess sovereign default risk, highlighting the role played by implicit government liabilities. The main policy implication is that sound public finances is a necessary but a largely insufficient condition to restore fiscal solvency.

       The aim of this workshop is to stimulate and disseminate research on this issue, and to foster policy debate between academics and practitioners on the main lessons that can be drawn from the Eurozone recent experience, compared to Emerging markets ones. The workshop will include presentations of accepted papers in three non-parallel sessions, and two keynote lectures. A final round table between academics and practitioners will draw some conclusions.


        Both empirical and theoretical papers are welcome. A non-exhaustive list of topics includes:

  • the determinants of sovereign yield spreads: the safe haven premium motive; markets’ mispricing of risk; explicit and implicit government liabilities; fiscal solvency; bonds’ liquidity and risk aversion;
  • contagion in sovereign yield spreads: disentangling fundamentals and contagion effects;
  • the interaction between the Great Contraction and the euro area sovereign debt crisis: interactions between common shocks and idiosyncratic weaknesses;
  • the role of financial regulations, the micro-structure of bond markets, and financial institutions in the contagion;
  • the definition of fiscal solvency: financial conditions; implicit liabilities; fiscal rules; fiscal institutions;
  • policies to face sovereign debt crises: sovereign debt restructuring; controlled default;
  • monetary policy, fiscal policy and sovereign debt management within a single currency area: independence of central banks; monetary-fiscal policy coordination; conventional and unconventional monetary policies;  Eurobonds versus stabilization mechanisms.

Keynote Speakers

Giancarlo Corsetti (University of Cambridge), Francesco Giavazzi (Bocconi University and MIT)

Scientific Committee

Luca Jellinek (Crédit Agricole), Elisa Faraglia (University of Cambridge),
Alessandro Missale (University of Milano), Lucio Sarno (Cass Business School)

 

Organizing Committee

Giovanni Caggiano (University of Padova), Efrem Castelnuovo (University of Padova),
Luciano Greco (University of Padova), Davide Iacovoni (Italian Treasury).

 

Deadline for Submissions

        A PDF version of the paper must be sent to efrem.castelnuovo@unipd.it before June 1st, 2012. Detailed abstracts will be considered but preference will be given to completed papers. Decisions will be taken by the Scientific Committee and authors will be informed before July 1st, 2012. "Bob Hall" rules are in effect: we will contact only authors of accepted papers. Authors submitting papers may be asked to act as discussant. For further details please contact members of the Organizing Committee.

 

Venue

The workshop will take place on October 4th-5th 2012, at the San Servolo Island, Venice.

 

        Participation to the workshop is open also to listeners. Registration fees for listeners are 150 €. Registration fees cover lunch and dinner as well as workshop materials and coffee breaks.