Sovereign Debt and Default after the Financial Crisis of 2007–08 - November 28-29, 2011

November 28–29, 2011
Federal Reserve Bank of Atlanta

Overview

The Center for Financial Innovation and Stability at the Federal Reserve Bank of Atlanta sponsored a conference on "Sovereign Debt and Default after the Financial Crisis of 2007–08." The conference addressed the ongoing difficulties associated with sovereign debt in the euro area, which have raised concerns about their effects on the countries in this area and elsewhere. This conference examined the very controversial market for credit default swaps and the role of this market in the difficulties. It also looked at the relationship between the monetary union and the fiscal difficulties and examined the experiences and difficulties of specific countries, including those currently troubled, such as Greece, and those that have dealt with difficulties in the past, such as Iceland and the Baltic States. The discussion included participants from Europe and the United States as well as participants from academic, financial, and policy institutions.

Agenda

Monday, November 28, 2011

U.S. Fiscal Policy or Lack of Policy
Thomas R. Saving, Texas A&M University [Presentation] pdf document
Discussant
William R. Dougan, Clemson University

Land, Debt, and Taxes: Origins of the U.S. State Default Crisis, 1839 to 1842 pdf document
John J. Wallis, University of Maryland [Presentation] pdf document
Discussant
Michael Edelstein, Queen's College, City University of New York [Summary] pdf document

Do Sovereign CDS and Bond Markets Share the Same Information to Price Credit Risk? An Empirical Application to the European Monetary Union Case pdf document
Sergio Mayordomo, Spanish Securities Market Commission [Presentation] pdf document
Discussant
Gerald P. Dwyer, Federal Reserve Bank of Atlanta [Presentation] pdf document

What Is the Risk of European Sovereign Default? Fiscal Space, CDS Spreads and Market Pricing of Risk pdf document
Joshua Aizenman, University of California at Santa Cruz [Presentation] pdf document
Discussant
Charles Smithson, Rutter Associates [Presentation] pdf document

Tuesday, November 29, 2011

The Varieties of European Crises pdf document
Thomas D. Willett, Claremont McKenna and Claremont Graduate University [Summary] pdf document [Presentation] pdf document
Discussant
Eric Fisher, California Polytechnic State University [Summary] pdf document [Presentation] pdf document

The Greek Debt Crisis: Origins and Implications pdf document
Georgios P. Kouretas, Athens University of Economics and Business
Discussant
David Zervos, Jefferies & Company Inc.

Ireland
Colm McCarthy, University College, Dublin [Presentation] pdf document
Discussant
John Devereux, Queen's College, City University of New York [Presentation] pdf document

From Boom to Bust: the Iceland Story pdf document
Thorvaldur Gylfason, University of Iceland [Presentation] pdf document
Discussant
Tom Berglund, Hanken School of Economics, Helsinki [Summary] pdf document

Spain
Sovereign Debt and Banking Challenges for Spain pdf document
Santiago Carbo Valverde, University of Granada & Funcas [Presentation] pdf document
Discussant
Spain: Navigating the Storm pdf document
Maria Nieto, Bank of Spain

The Financial Crisis of 2007-10 in Eastern Europe and the Baltics pdf document
Anders Aslund, Peterson Institute for International Economics [Presentation] pdf document
Discussant
The Financial Crisis of 2007-10 in Eastern Europe and the Baltics pdf document
Anete Pajuste, Riga Business School [Presentation] pdf document

What do we make of it all? General discussion