2004 CESifo Conference on

Sustainability of Public Debt

A joint CESifo-LBI Conference

Call for Papers

CESifo and the Ludwig-Boltzmann Institute (LBI) at the University of Klagenfurt will jointly organize a conference on the sustainability of public debt. The problems of high and rising public debts and deficits have raised concern in many industrial countries. Especially during the period preceding Stage Three of the European Economic and Monetary Union (EMU), the fiscal convergence criteria of the Maastricht Treaty have restricted governments' abilities to finance additional expenditures by credit instead of tax revenues. The Stability and Growth Pact (SGP) is meant to impose fiscal discipline upon policy-makers of countries participating in the Euro System after the beginning of Stage Three. Nevertheless, many member states of the Euro System still have not managed to reduce their debt substantially, and during the recent recession, the chances of avoiding budget deficits have diminished again. This can be seen not only from actual budgetary developments, but also from the recent discussion about the SGP and proposals for its reform.

However, the Maastricht process and the intensive discussions about virtues and vices of public debt both in academia and in the public have changed the fiscal policy paradigm and possibly also the public's attitude towards public debt. To a large extent, Keynesian policy prescriptions are no longer relied upon, and the idea of sustainability of budgetary policies has gained gradual acceptance, despite its sometimes-unpopular consequences. But it remains to be seen whether this paradigm change will be lasting and how much it depends upon the global economic prospects.

The purpose of the CESifo-LBI Conference consists in taking stock of the theoretical and empirical knowledge about public debt and budget deficits, in analyzing several issues that have not received sufficient attention in the past, and in comparing developments of public debt and budget deficits in different countries by means of selected country studies. Based on the results of the conference, policy conclusions will be derived. Publication of selected papers from the conference (after a refereeing process) in books in the CESifo volumes series with MIT Press (in English) and in the LBI series with Peter Lang (in German) will serve to disseminate the most relevant results. It is understood that all submissions to the conference imply submission to these publication outlets.

Topics to be treated in presentations include (but are not restricted to):
- The political economy of public debt and deficits: Survey of causes and consequences
- Measurement of public debt and deficits
- Implicit public debt, especially social security obligations
- Public debt management
- Public debt and deficits in the EMU: Alternatives to the SGP

- Country studies: Developments in the recent past (from about 1960 to present), explanations, macroeconomic effects in the past, prospects for the near future and the medium run, current policy debates: USA, Japan, Germany, Netherlands, Italy, UK, Denmark, Switzerland, Austria, Eastern Europe

The deadline for submission of papers is June 30, 2004. CESifo research network members interested in presenting a paper should send their paper or extended abstracts to the workshop organisers:

CESifo will provide accommodation, and reimburse economy travel costs for authors of accepted papers.
Further questions regarding the organisation and scientific content of the workshop should be addressed to the conference organises.

For more information see www.cesifo.de