Fiscal policy and its implications for monetary and financial stability

BIS Papers No 59
December 2011

The BIS 10th Annual Conference took place in Lucerne, Switzerland on 23-24 June 2011. The event brought together senior representatives of central banks and academic institutions, who exchanged views on the conference theme of "Fiscal policy and its implications for monetary and financial stability". This volume contains the opening address of Stephen Cecchetti (Economic Adviser, BIS), a keynote address from Martin Feldstein, and the contributions of the policy panel on "Fiscal policy sustainability and implications for monetary and financial stability". The participants in the policy panel discussion, chaired by Jaime Caruana (General Manager, BIS), were José De Gregorio (Bank of Chile), Peter Diamond (Massachusetts Institute of Technology) and Peter Praet (European Central Bank).


The papers presented at the conference and the discussants' comments are released as BIS Working Papers 361 to 365:


Long-term fiscal sustainability in major economies, BIS Working Papers No 361
by  Alan J Auerbach
Comments by Pier Carlo Padoan and Paul van den Noord and Ray Barrell

The austerity myth-gain without pain, BIS Working Papers No 362
by  Roberto Perotti
Comments by  Carlo Cottarelli and Harald Uhlig

The liquidation of government debt, BIS Working Papers No 363
by  Carmen M. Reinhart and M. Belen Sbrancia
Comments by  Ignazio Visco and Alan Taylor

Perceptions and misperceptions of fiscal inflation, BIS Working Papers No 364
by Eric M. Leeper and Todd B. Walker
Comments by Christopher Sims and Michael Bordo

Was this time different - Fiscal policy in commodity republics, BIS Working Papers No 365
by  Luis Felipe Céspedes and Andrés Velasco
Comments by  Choongsoo Kim and Guillermo Calvo