Conference January 29, 2008

Fiscal policy is facing difficult challenges over the coming decades because of an aging population. For this reason fiscal sustainability has risen to the top of the political agenda in most western countries. One strategy for coping with the challenges ahead is to limit public debt through strict fiscal policy rules. Another is to implement large-scale labour market reforms in order to ensure high employment. Both these roads are being followed by Sweden. This raises a number of questions: What long-term targets are appropriate for government debt? How should stabilisation policy be conducted in an economy subject to tight fiscal policy rules and in times of large-scale structural reforms? To what extent do the Swedish labour market reforms contribute to higher employment?

At the conference, prominent international researchers analysed the principles of good fiscal policy. The speeches were based on work commissioned by the Swedish Fiscal Policy Council. The aim of the conference was to contribute to a well-informed debate on fiscal policy in Sweden. Programme

Speeches

Alan Auerbach, "Long-Term Objectives for Government Debt" Paper Slides
Comments by Kjetil Storesletten Slides

Roel Beetsma, "A Survey of the Effects of Discretionary Fiscal Policy" Paper Slides
Comments by Lars E O Svensson Slides

Frederick van der Ploeg, "Prudent Budgetary Policy with Uncertain Revenues, Investment and Labour Market Reforms" Paper Slides
Comments by John Hassler Slides

Jörgen Elmeskov, "The Speed with which Labour Market Reforms Work - Lessons from International Experience" Slides

Anders Forslund, "Den svenska jämviktsarbetslösheten - en översikt" (Equilibrium Unemployment in Sweden — an Overview) Paper Slides
Comments by Bertil Holmlund Slides