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Giovanni Callegari (ECB) speaks at the ESM

ESM premises


"Dynamic fiscal limits and monetary-fiscal policy interactions"

Changes in the way economic agents perceive the sustainability of public debt can severely affect the way an economy responds to shocks. Monetary policy plays a key role in this respect.

This paper studies how different monetary policy stances affect the sustainability of public debt and the transmission of fiscal policy shocks, depending on the initial fiscal conditions and on the expectations on the future conduct of fiscal policy.

In particular, we focus on the following set of questions:
  • In normal times, do different degrees of monetary policy activism affect the maximum amount of public debt that a country is able to service? How is this debt limit affected by persistent periods of binding Zero-Lower Bound (ZLB)?
  • How does the transmission mechanism of fiscal policy shocks changes once we make public debt limits endogenous to monetary policy considerations?
Giovanni Callegari -- Giovanni Callegari is a Principal Economist in the Fiscal Policy Division of the European Central Bank (ECB), where he has worked since 2011. Between 2007 and 2011, Mr. Callegari worked as an Economist at the International Monetary Fund (IMF). Mr. Callegari's research activity focuses on fiscal policy analysis, especially on the macroeconomic impact of fiscal shocks, and the role of policy uncertainty. Mr. Callegari has also extensively worked on country and mission work both at the IMF and the ECB. At the moment, Mr. Callegari is the Deputy Mission Chief for the ECB in the context of the ESM adjustment programme with Greece.

This is an ESM research internal seminar. If you would like to attend, please write an email to