Monetary Policy, Fiscal Policy and Public Debt in a Post COVID World

Date: Thursday 18th Nov 2021 - Friday 19th Nov 2021 

Programme Areas: MEF 

Location: Banque de France, Paris, Paris, France 

Collaborating Institutes: Banque de France 

Fiscal policy has responded to the economic disruptions caused by the global COVID-19 pandemic with stimulus and income-support packages of unprecedented scale, while monetary policy has further enlarged the set of instruments it uses to respond to large shocks in a low r-star environment.  In parallel, the resulting increase in public debt has rekindled debates on the possible constraints put by high levels of public debt on the ability of monetary policy to control inflation, and the impact of inflation on public debt.

This new environment opens numerous questions on how to design monetary and fiscal policies going forward and how they interact in an environment of high public debt, in particular in a monetary union. Will the post-pandemic economy require a different policy mix, and/or a different form of coordination between fiscal and monetary authorities? Do high levels of public debt pose a threat to the central bank’s ability to deliver price stability? Is inflation a feasible and/or desirable solution to high levels of public debt?

The BdF conference aims at bringing together researchers from academia, central banks and other policy institutions to present empirical and theoretical work on monetary policy, fiscal policy, and public debt, with a particular interest in works that speak of their interactions.

Invited lectures will be given by:

  • John H. Cochrane (Hoover Institution, Stanford University and NBER)
  • Ricardo Reis (London School of Economics and CEPR)
  • Federica Romei (University of Oxford and CEPR)

All presentations will be in plenary sessions and each paper will be assigned a discussant. The conference is currently planned as an in-person event in Paris. Should travel restrictions continue to bind by the time of the conference however, it will take place online. Some of the topics of interest include, but are not limited to:

  • Monetary and fiscal policy in a world with r*
  • Fiscal dominance, fiscal theory of the price level, money-financed stimulus, helicopter money
  • Models of sovereign default
  • Economic history on periods with high public debt
  • Implications for policy coordination within a monetary union

We invite authors to submit completed papers or extended abstracts. Preferences are for completed papers.

If you would like to submit a paper, please upload your paper  by visiting and indicate whether or not you wish to present a paper or act as a discussant. You will also be asked to specify your funding requirements. If you do not currently have a CEPR profile, please create a new profile here and then click on the registration link above.

The deadline for paper submission is Tuesday 7 September 2021. Authors of accepted papers will be informed by 1st October 2021. Travel and local accommodation for speakers and discussants from academic institutions will be funded by the Banque de France according to its internal guidelines.
Organising committee:
Vincent Bignon (Banque de France and CEPR)
Stéphane Dupraz (Banque de France)
Christoph Grosse-Steffen (Banque de France)