Organized by Zeno Enders (University of Heidelberg), Gernot Müller (University of Tübingen), and Michael Evers (University of Hohenheim)

With generous financial support by the Deutsche Bundesbank (Hauptverwaltung Baden-Württemberg)

The state of Baden-Württemberg is a powerhouse of the global economy. Its welfare is therefore  - perhaps more than elsewhere - dependent on the proper functioning of international financial markets. The workshop aims at bringing together leading scholars from Baden-Wüttermberg and abroad in order to discuss recent phenomena and developments in the global economy as well as their implications for economic policy.

Friday, December 7^th

14:00 - 15:40 Session 1: Exchange rates

Currency Manipulation by Thomas Mertens , Federal Reserve Bank of San Francisco (joint work with Tarek Hassan, and Tony Zhang)

Discussion: Wilhelm Kohler, University of Tübingen

Exchange rate undershooting: Evidence and Theory by Thomas Hettig, University of Tübingen (joint work with Gernot Müller, and Martin Wolf)

Discussion: Benjamin Born, Frankfurt School

16:00 - 17:40 Session 2: Euro-area wide unemployment insurance

Optimal Federal Unemployment Insurance – Theory, and an application to Europe by Keith Kuester, University of Bonn (joint work with Marek Ignaszak and Philip Jung)

Discussion: Michael Krause, University of Köln

On a European Unemployment Insurance by David A. Vespermann, University of Heidelberg (joint work with Zeno Enders)

Discussion: Christian Manger, University of Tübingen

Saturday, December 8^th

9:00 - 10:00 Keynote lecture

Exchange Rates and Uncovered Interest Differentials: The Role of Permanent Monetary Shocks by Stephanie Schmitt-Grohé, Columbia University (joint work with Martin Uribe)

10:00 - 10:50

Revisiting the Costs of Self-Oriented National Monetary Rules by Martin Bodenstein, Federal Reserve Board (joint work with Giancarlo Corsetti and Luca Guerrieri)

Discussion: Gianni Lombardo, BIS

11:10 - 12:50 Session 3: Nominal rigidities

Price Rigidity and the Origins of Aggregate Fluctuations by Raphael Schoenle, Brandeis University (joint work with Michael Weber and Ernesto Pasten)

Discussion: Bartosz Mackowiak, ECB

Government Spending, Downward Wage Rigidity, and Exchange Rate Dynamics by Francesco D’Ascanio, University of Tübingen (joint work with Benjamin Born, Gernot Müller, and Johannes Pfeifer)

Discussion: Sebastian Schmidt, ECB

14:00 - 15:40 Session 4: Interest rate spreads

Sovereign debt crisis and bond market liquidity by Julian Schumacher, ECB

Discussion: Egor Maslov, University of Zürich

Market discipline by Susanne Wellmann, University of Tübingen (joint work with Benjamin Born, Gernot Müller and Johannes Pfeifer)

Discussion: Steffen Elstner, RWI

16:00 - 17:40 Session 5: Forecasting

Revisions to Potential Output Estimates in the EU after the Great Recession by Christopher Zuber, University of Heidelberg (joint work with Jonas Dovern)

Discussion: Esteban Prieto, Bundesbank

Phillips Curves in Noisy Information Forecasts by Markus Kontny, University of Hohenheim

Discussion: Franziska Hünnekes, LMU Munich