Fiscal Policy and Sovereign Debt Conference
June 5-6, 2025
Please register to watch live (Zoom)
This two-day conference—organized jointly by the IMF, Inter-American Development Bank, Faculty of Business and Economics (University of Chile), and Faculty of Economics and Management (Pontifical Catholic University of Chile) in Santiago—offers a platform for discussing fiscal challenges confronting countries amid elevated debt levels and growing demands on public budgets. The conference, part of Fiscal Affair’s Department’s Sovereign Debt Network Project, brings together leading scholars and senior policymakers to explore a range of fiscal issues of import to the IMF membership, such as the interactions between fiscal and monetary policy and financial repression, the macroeconomic implications of government debt supply shocks and fiscal news, and the interaction between sovereign default risk and international trade.
| THURSDAY, JUNE 5th | |
| 9:00 am – 09:10 am |
Opening remarks: Era Dabla-Norris (Fiscal Affairs Department, IMF) and Enrique Manzur (Associate Dean, School of Economics and Business, University of Chile) |
| 09:10 am – 10:30 am | Session1: Fiscal Dominance and Financial Repression |
| Moderator: | Eric Parrado (Inter-American Development Bank) Accounting for Credibility: Monetary-Fiscal Interactions and the Credibility of Central Bank Mandates Luigi Bocola (Stanford University), Alessandro Dovis (University of Pennsylvania), Gaston Chaumont (University of Rochester), and Rishabh Kirpalani (University of Wisconsin-Madison) Discussant: Francisco Roch (Universidad Torcuato Di Tella) From Fiscal Deadlock to Financial Repression: Anatomy of a Fall Olivier Jeanne (Johns Hopkins University) Discussant: Rishabh Kirpalani (University of Wisconsin-Madison) |
| 10:30 am – 11:00 am |
Coffee break |
| 11:00 am – 12:20 pm | Session 2: Fiscal Design: Efficiency and Equity |
| Moderator: | Era Dabla-Norris (Fiscal Affairs Department, IMF) Capital Reallocation and Private Firm Dynamics Anmol Bhandari (University of Minnesota), Paolo Martellini (NYU Stern), Ellen McGrattan (University of Minnesota) Discussant: Humberto Martinez (University of Chile) Welfare Multipliers Mehdi Bartal (Mohammed VI Polytechnic University) and Yvan Becard (PUC Rio) Discussant: Caio Machado (PUC Chile) |
| 12:20 pm – 02:00 pm |
Lunch |
| 02:00 pm – 03:20 pm | Session 3: Sovereign Borrowing and Default Risk |
| Moderator: | Pablo García (Universidad Adolfo Ibanez) The Perils of Bilateral Sovereign Debt Francisco Roldan (IMF) and César Sosa-Padilla (University of Notre Dame) Discussant: Eugenia Gonzalez-Aguado (Toulouse School of Economics) Sovereign Risk, Firm Financing and International Trade Eugenia Andreasen (University of Chile), David Kohn (Central Bank of Chile), Guido Sandleris (Universidad Torcuato Di Tella) Discussant: Stelios Fourakis (Johns Hopkins University) |
| 03:20 pm – 03:50 pm |
Coffee break |
| 03:50 pm – 05:00 pm | Policy Panel |
| Moderator: Panelists: |
Vitor Gaspar (Director, Fiscal Affairs Department, IMF) José De Gregorio (Dean, School of Economics and Business, University of Chile) Marcos Mendes (Associate Researcher in Public Policies, Insper) Jessica Roldan (Director of Macroeconomic Studies, CAF) Rodrigo Valdés (Director, Western Hemisphere Department, IMF) |
| 06:30 pm – 08:30 pm |
Dinner (by invitation only) |
| FRIDAY JUNE 6th | |
| 09:10 am – 10:30 am | Session 4: Fiscal Expectations and Asset Prices |
| Moderator: | Mariana García-Schmidt (Central Bank of Chile)
Expansionary Austerity Miguel Bandeira (Insper), Marco Bonomo (Insper), Carlos Carvalho (PUC-Rio), and Marcos Mendes (Insper) Discussant: Oscar Valencia (IDB) Learning about Convenience Yield from Holdings Felix Corell (VU University Amsterdam), Lira Mota (MIT), Melina Papoutsi (ECB) Discussant: Marcio Garcia (PUC Rio) |
| 10:30 am – 11:00 am |
Coffee break |
| 11:00 am – 12:20 pm | Session 5. Sovereign Bond Markets |
| Moderator: | Alejandro Vicondoa (Pontifical Catholic University of Chile)
Treasury Supply Shocks: Propagation through Debt Expansion and Maturity Extension Huixin Bi (Federal Reserve Bank of Kansas City), Maxime Phillot (Swiss National Bank), Sarah Zubairy (Texas A&M University) Discussant: Andy Neumeyer (Universidad Torcuato Di Tella) Can U.S. Treasury Markets Add and Subtract? Roberto Gomez Cram (London Business School), Howard Kung (London Business School), Hanno Lustig (Stanford University) Discussant: Sarah Zubairy (Texas A&M University) |
| 12:20 pm – 12:30 pm |
Concluding Remarks: José Miguel Sánchez (Dean, Faculty of Economics and Administration, Pontifical Catholic University of Chile) and Eric Parrado (Inter-American Development Bank) |
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Conference organizers: Era Dabla-Norris, Alexandra Solovyeva (International Monetary Fund), Joao Ayres (Inter-American Development Bank), Eugenia Andreasen (University of Chile), and Alejandro Vicondoa (Pontifical Catholic University of Chile). |
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