Session 19: Fiscal Sustainability

Several countries have now record high levels of public debt that are comparable to the ones inherited from WWII. This creates challenges for both fiscal sustainability and the conduct of monetary policy. This session aims to bring together scholars working at the intersection of monetary policy, fiscal policy, fiscal sustainability, asset pricing, central bank independence, and the valuation of government debt. What role do central banks play in creating fiscal space for governments? Is there a possibility of fiscal dominance going forward? How does this possibility affect asset prices and the creation of safe assets? Could the erosion of the U.S. fiscal position threaten its reserve currency role? What are the consequences of the threats to central bank independence? Both applied and theoretical contributions are welcome. The goal is to have a lively discussion enriched by a variety of perspectives.