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Heterogeneity in currency areas and macroeconomic policies

European Central Bank conference hosted by the Monetary Policy Research and Monetary Policy Strategy Divisions

12.30 p.m. Registration and buffet lunch
2 p.m. Session 1
Macroeconomic adjustment in currency areas

Chair: Klaus Masuch, European Central Bank

Keynote speech 1
It’s all about risk-sharing
Atif Mian, Princeton University
keynote speech
3 p.m. Sudden stops and expenditure switching: The role of income and relative prices
Rudolfs Bems, Latvijas Banka; International Monetary Fund
with Julian di Giovanni, Universitat Pompeu Fabra; Barcelona Graduate School of Economics; CREI; CEPR

Discussant: Franck Portier, Toulouse School of Economics
Paper, presentation, discussion
3.50 p.m. Coffee break
4.20 p.m. Understanding the gains from wage flexibility: The exchange rate connection
Jordi Galí, CREI; Barcelona Graduate School of Economics
with Tommaso Monacelli, Bocconi University; IGIER

Discussant: Mirko Wiederholt, Goethe University Frankfurt
Paper, presentation, discussion
5.10 p.m. Reassessing regional labour market adjustments in Europe and the US: Has the role of migration changed?
Frank Smets, European Central Bank,
with Robert Beyer, Goethe University Frankfurt

Discussant: Giuseppe Bertola (EDHEC Business School)
Paper, presentation, discussion
7.30 p.m. Dinner
Hosted by Benoît Cœuré, Member of the Executive Board, European Central Bank
8.30 a.m. Registration and coffee
9 a.m. Session 2
Fiscal unions

Chair: Frank Smets, European Central Bank

Keynote speech 2
Fiscal unions and macroprudential policies for currency areas (a)
Fiscal unions and macroprudential policies for currency areas (b)
Emmanuel Farhi, Harvard University
keynote speech (a), keynote speech (b)
10 a.m. A culture clash view of the EU crisis
Luigi Guiso, EIEF; CEPR,
with Helios Herrera, HEC Montréal and Massimo Morelli, Columbia University

Discussant: Philippe Weil, Sciences Po; ECARES; CEPR
Paper, presentation, discussion
10.50 a.m. Coffee break
11.20 a.m. Spillover of fiscal shocks in the euro area
Fabio Canova, European University Institute; CEPR
with Matteo Ciccarelli, European Central Bank and Pietro Dallari, Universitat Pompeu Fabra

Discussant: Roel Beetsma, University of Amsterdam
Paper, presentation, discussion
12.10 p.m. Inspecting the Mechanisms: Leverage and the Great Recession in the Eurozone
Philippe Martin, Sciences Po; CEPR
with Thomas Philippon, New York University; CEPR; NBER

Discussant: Fiorella De Fiore, European Central Bank
1 p.m. Buffet lunch
2.30 p.m. Session 3
Monetary and financial stability in currency areas

Chair: Giancarlo Corsetti, University of Cambridge; CEPR

Inflation, debt and default, IIlenin Kondo, Federal Reserve Board
with Fabrizio Perri, Federal Reserve Bank of Minneapolis; University of Minnesota; NBER; CEPR and Sewon Hur, University of Pittsburgh

Discussant: Keith Kuester, University of Bonn
Paper, presentation, discussion
3.20 p.m. Market deregulation and optimal monetary policy in a monetary union
Matteo Cacciatore, HEC Montréal
with Giuseppe Fiori, North Carolina State University and Fabio Ghironi, Boston College

Discussant: Andrea Ferrero, University of Oxford
Paper, discussion
4.10 p.m. Coffee break
4.40 p.m. Macroprudential policy implementation in a heterogeneous monetary union
Margarita Rubio, University of Nottingham

Discussant: Caterina Mendicino, European Central Bank
Paper, presentation, discussion
5.30 p.m. End of conference

Call for papers

ECB conference on Heterogeneity in currency areas and macroeconomic policies

Deadline submission: 30 June 2013

The Directorate General Economics and Directorate General Research of the European Central Bank, in collaboration with the Centre for Economic Policy Research (CEPR), are organising a conference entitled “Heterogeneity in currency areas and macroeconomic policies”, which will be held on 28 and 29 November 2013 in Frankfurt am Main.

The recent sovereign and financial crisis in the euro area has emphasised the importance of understanding and dealing with cross-border heterogeneity in large currency areas, whether the borders of states and provinces within a country (as in a federal country like the United States) or across countries (as in an economic and monetary union like the euro area).

The goal of the conference is to invite policy-relevant theoretical and empirical academic contributions and bring together academic economists and central bank researchers to discuss these issues.


Both empirical and theoretical contributions are welcome. Possible topics include, but are not limited to:

  • cross-border financial linkages and monetary policy;
  • trade integration, financial integration and the propagation of and adjustment to shocks;
  • sovereign risk, financial frictions and monetary policy;
  • standard and non-standard monetary policies in multi-sector/multi-country economies;
  • labour market frictions and macroeconomic adjustment;
  • migration and labour mobility;
  • coordination and competition among multiple fiscal authorities in a currency area;
  • monetary and fiscal policy interactions in a monetary union;
  • macro-prudential policies in a heterogeneous currency area;
  • the positive and normative economics of fiscal federal institutions;
  • monetary policy and lending-of-last-resort functions in a monetary union;
  • heterogeneity and monetary policy: steady state considerations versus transitional dynamics.


Among those who have already confirmed their participation are Emmanuel Farhi (Harvard University), Jordi Galí (Centre de Recerca en Economia Internacional (CREI)), Philippe Martin (Sciences Po) and Atif Mian (Princeton University).


To submit a paper, please e-mail attaching the paper in pdf format, by 30 June 2013. Authors whose papers have been accepted will be notified by 31 July 2013.

Expenses for accepted papers

Travel and accommodation expenses of those presenting papers and discussants will be reimbursed. It should be noted, however, that participants from the European System of Central Banks or other European Union institutions are expected to cover their own expenses.

Conference organisers

Giancarlo Corsetti (University of Cambridge & CEPR), Luca Dedola, Giovanni Lombardo and Roberto Motto (all ECB).