The ongoing 21st century has brought with it a series of big global shocks the management of which has posed severe policy challenges, not least for fiscal stabilization and stability of public finances. Nordic countries are no exception to the rule.
Have conventional fiscal stabilizers, most notably fiscal multipliers and automatic stabilizers remained stable over time and in the face of these shocks?
Furthermore, since macroeconomic uncertainty has arguably increased due to the series of big shocks alluded to above, can we observe new features in the interplay between discretionary fiscal policy decisions and fiscal multipliers and automatic stabilizers?
These are some of the issues that will be presented and discussed during this peer-review conference of the upcoming Nordic Economic Policy Review. The conference will take place in Reykjavik and online on the 8th of November.
The seminar will address questions like:
- Are there big differences in fiscal multipliers and automatic stabilizers across Nordic countries?
- Are fiscal multipliers time and state dependent in an important nontrivial way? In particular, any lessons from the series of big global events, the 2008 financial crisis, the 2020 COVID-19 pandemic and the Russian invasion to Ukraine in February 2022?
- Do spending limits used in Nordic countries constrain the efficiency of fiscal stabilization?
- Do fiscal multipliers differ across spending items and tax instruments? Country differences?
- Does public indebtedness affect the dynamics of fiscal multipliers and the efficiency of fiscal stabilization in general?
We invite you to a full day with presentations of recent research by leading Nordic experts, comments by academics and policymakers, and policy discussions. We offer coffee and a light lunch for all onsite participants.
Agenda November 8, 2023
8:30 – 9:00: Coffee and registration
9:00 – 9:05: Welcome remarks
9:05 – 10:15: Fiscal stabilizers in Iceland
Presentation by Arnaldur Sölvi Kristjánsson, University of Iceland
Gunnar Haraldsson, Icelandic Fiscal Council
Katrín Ólafsdóttir, Reykjavik University
10:15 – 10:30: Coffee break
10:30 – 11:45: Fiscal stabilizers in Denmark
Presentation by Torben Andersen, Aarhus University
Paul Kramp, Ministry of Finance
Søren Hove Ravn, University of Copenhagen (online)
11:45- 13:00: Fiscal stabilizers in Finland
Presentation by Jenni Kellokumpu, Ministry of Finance, Finland
(Co-authors Leena Savolainen, Ministry of Finance and Simo Pesola,
National Audit Office of Finland)
Martti Hetemäki, Ministry of Finance (online)
Antti Ripatti, University of Helsinki (online)
13:00 – 13:45: Lunch
13:45 – 15:00: Fiscal stabilizers in Norway
Presentation by Hans Holter, University of Delaware
Tord Krogh, Ministry of Finance
15:00 – 15:30: Coffee break
15.30 – 16:45: Fiscal stabilizers in Sweden
Presentation by Markus Sigonius, National Institute of Economic Research
Erik Höglin, Ministry of Finance
Karl Harmenberg, University of Oslo (online)
16:45 – 17:00: Concluding comments
Time allocation for each paper: presenter 45 minutes, discussants 15 minutes each