On 9 and 10 November, the Franco-German Fiscal Policy Seminar was held, jointly organised by the German Federal Ministry of Finance and the French Treasury D. This annual seminar aims to establish links between the world of academic research and public policy makers. This year’s theme was “One year through the COVID-19 crisis“.

The objective of this seminar is to present and discuss cutting-edge research in order to improve understanding of the economic mechanisms at work during and especially after the pandemic, and to inform public decision-makers on the appropriate responses, particularly in a Franco-German context which benefits from a common knowledge base.

The seminar was organised around five sessions (i) the impact of the crisis on covid, (ii) the debt burden, (iii) sovereign interest rates, (iv) fiscal stabilisation and (v) strengthening the resilience of the economic and monetary union. These sessions were preceded by a keynote lecture on the anatomy of the global savings glut by Mortiz Schularick (Sciences Po and University of Bonn), with the seminar being opened by Agnès Bénassy-Quéré (French Treasury and Paris School of Economics) and Jakob von Weizsäcker (German Federal Ministry of Finance).

14 papers were presented by their authors during this seminar. These papers were selected, via a call for papers, by the members of the Scientific Committee of the seminar.

+ The full report (in french) >>


Pourquoi un séminaire franco-allemand ?

Agnès Bénassy-Quéré (French Treasury & Paris School of Economics)
Jakob von Weizsäcker (German Federal Ministry of Finance).


Mortiz Schularick (Sciences Po and University of Bonn)

 Session 1 – The covid crisis unfolding

Causal effects of closing businesses in a pandemic : Presentation – Discussion
Supply shocks in supply chains: Evidence from the early lockdown in China : Presentation – Discussion
From Macro to Micro: heterogeneous exporters in the Pandemic : Presentation – Discussion

Session 2 – Debt overhang

The Debt Capacity of a Government : Presentation – Discussion
Breakup and Default Risks in the Great Lockdown : Presentation – Discussion

Session 3 – Sovereign interest rates

The Liquidity Channel of Fiscal Policy : Presentation – Discussion
Dispelling the Shadow of Fiscal Dominance? Fiscal and Monetary Announcement Effects for Euro Area Sovereign Spreads in the Corona Pandemic : Presentation – Discussion
Do Fundamentals Explain Differences between Euro Area Sovereign Interest Rates? : Presentation – Discussion

Session 4 – Fiscal stabilization 

Does tax policy work when consumers have imperfect price information? Theory and evidence : Presentation – Discussion
What are the price effects of temporary VAT Changes ? Evidence from Germany : Presentation – Discussion
Should We Insure Workers or Jobs During Recessions? : Presentation – Discussion

Session 5 – Strengthening the resilience of the EMU to future shocks

The Effects of Government Spending in the Eurozone : Presentation – Discussion
Monetary-Fiscal Crosswinds in the European Monetary Union : Presentation – Discussion
Conditionality in Official Lending: Compliance through Strategic Assessment : Presentation – Discussion



Crédits photo : Ludovic Suttor-Sorel

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