News and Fiscal Policy

This workshop aims at bringing together experts in the analysis of news, forecasting, uncertainty and the role of expectations in fiscal policy. The main purpose is to debate issues in the theoretical and empirical analysis of expectations in fiscal policy, and what new insights the latest analysis can deliver to policymakers. Changes in the behaviour of fiscal and monetary policy influence beliefs about the way debt will be stabilized. Time consistent policies that are bound by rules are just one of the possible regimes. There have been large shifts in the policy mix in economic history. Exiting from current strategies might be complicated and not time-consistent anymore. If policies become locked in, and economic agents start to believe future changes are unlikely, the effects of fiscal and monetary policy may change.