Is Europe going to repeat the European and global fiscal crisis – is a default scenario unavoidable?
From beginning of 2010, the economic policies of the EU and its several member states have been partially driven by the danger of a sovereign debt default. Starting at the Euro area periphery (Greece, Ireland and Portugal) this crisis has the potential to affect several other economies in Europe (and outside) which have high and rapidly growing debt-to-GDP ratios. This challenge raises several questions, including: (i) what exact scenario of fiscal tightening should be implemented, taking into consideration the weak and uncertain economic recovery and political constraints? (ii) can fiscal consolidation be expansionary and, if yes, under which circumstances? (iii) what is the optimal policy mix (expenditure reduction vs. tax increase)? (iv) can monetary policy accommodate shocks created by fiscal consolidation? (v) what role can be played by fiscal discipline rules and special fiscal institutions (like the fiscal policy councils) at the Union and national levels? (vi) how should the future permanent debt resolution mechanism in the EU be designed (default vs. bailout components)? | |||
| Moderator: CASE Fellow |
| Speaker: Professor for Economics at Warsaw School of Economics |
| Speaker: Member of CASE Advisory Council and of the Management Council of the Fundación Chilena del Pacífico |
| Speaker: Member of CASE Advisory Council and Professor of Economics at the Paris School of Economics |
| Speaker: CASE Fellow |
| Speaker: Professor at Viadrina University and holds the chair for macroeconomics |
