22/11/2010 - 23/11/2010 : DG ECFIN 7th Annual Research Conference 2010, Charlemagne Building, Brussels

Governments and markets after the crisis: Finding a new balance.

The global financial crisis and its fall-out reignite the debate about the role for governments and markets. The systemic failure in financial markets has shattered fundamental beliefs in the ability of markets to deliver macro-economic stability and growth, while prompting government intervention at an unprecedented scale. Maintaining open markets, sustaining economic and financial stability, and ensuring socially inclusive societies in the post-crisis world calls for new approaches to the governance of markets between the extremes of free-market fundamentalism and government interventionism. The conference will explore such new set-ups in areas such as the architecture of financial systems, international trade and exchange rate regimes, intra-EU adjustment mechanisms, and the design of modern welfare state arrangements.

At this year's conference eminent scholars and top economic policy makers discussed the following lead questions:

Where do we stand with fair and measured regulatory reform to strengthen the global financial system? How to reduce the risks posed to taxpayers and to broader social objectives
What is the respective role of markets and government to rebalance the world economy? What can improved co-ordination and better governance at the supra-national level achieve?
How to prevent intra-EU capital flows to nurture instabilities? Do we need fiscal mechanisms beyond the Stability and Growth Pact?
How to restore the sustainability of public finances without running into persistently high unemployment? Do high levels of public debt impair growth prospects?
How to match efficiency with fairness in modern welfare systems when public coffers are empty? What are the limits of market-driven growth to combat inequality, poverty and social exclusion?

Video

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Conference documents - Copyright rests with the authors
Programme	Programme(502 kB)
Full list of speakers	Speakers(43 kB)
Commissioner Olli Rehn	Keynote opening address(76 kB)
J. Elmeskov (OECD)	Setting the stage: The global economic outlook(2 MB)
Session I: Realigning risks, rewards and responsibilities: the re-design of the financial sector Chair: S. Berrigan (DG ECFIN)
B. White (OECD)	The Future of the Financial System: Problems and Possible solutions(893 kB)
X. Freixas (Universitat Pompeu Fabra)	Post Crisis Regulatory challenges(22 kB)
Dirk Schoenmaker (Duisenberg school of finance) (discussant)	Re-design of the financial sector: Comments on White and Freixas(367 kB)
N. Veron (Bruegel) (discussant)	Discussion of William White & Xavier Freixas ‘‘The re-design of the financial sector’’(314 kB)
Session II: Tackling economic imbalances: Global issues Chair: P. Bekx (DG ECFIN) (DG ECFIN)
H. Rey (London School of Economics)	Imbalances and the International Monetary System(490 kB)
G.M. Milesi-Ferretti (IMF)	Global Rebalancing(790 kB)
J. Pisani-Ferry (Bruegel) (discussant)
Ph. Lane (Trinity College) (discussant)
Session III: Tackling economic imbalances: European issues Chair: J. Kroeger (DG ECFIN)
B. Eichengreen (Berkeley University)	Imbalances in the Euro Area(175 kB)
J. von Hagen (University of Bonn)	Macroeconomic Imbalances in the Euro Area(2 MB)
A. Sapir (ULB) (discussant)	Imbalances in the Euro Area(205 kB)
Th. Mayer (Deutsche Bank Research) (discussant)	Discussion(73 kB)
Session IV: Restoring sustainable public finances after the crisis: Gains and pains ahead Chair: M. Mors (DG ECFIN)
A. Alesina (Harvard University)	The political consequences of large fiscal adjustments(505 kB)
V. Tanzi (Honorary President, IIPF)	The Return to Fiscal Rectitude After the Recent Departure(55 kB)
P. Bofinger (Univ. Wuerzburg) (discussant)	The market is dead - long live the market!(529 kB)
P. van den Noord (OECD) (discussant)	Restoring sustainable public finances after the crisis: what can we learn from Alesina and Tanzi(202 kB)
Session V: Matching efficiency with fairness: Labour market and distributional issues Chair: K. Pichelmann (DG ECFIN)
T. Piketty (Paris School of Economics)	Wealth, inequality & assets: where is Europe heading?(6 MB)
T. Andersen (Aarhus University)	Collective risk sharing: the social safety net and employment(457 kB)
R. Torres (ILO) (discussant)	Efficiency with fairness: how far can policies go?(333 kB)
A. Watt (ETUI) (discussant)	Matching efficiency with fairness: Labour market and distributional issues(265 kB)
Concluding panel session: Finding a new balance between governments and markets for broad-based sustainable growth: What can be done at the Community level? Chair: M. Buti (DG ECFIN)
Lead interventions: V. Gaspar, H. Rey, V. Tanzi, P. Bofinger, and T. Andersen	Introductory remarks at the concluding policy panel(89 kB) - Vítor Gaspar