Monetary policy trade-offs in a heterogenous currency area

Call for Papers

Submission deadline: March 2, 2026

Monetary policy in a heterogeneous currency area faces inherent trade-offs because differences across countries, regions, sectors and groups shape both how shocks are transmitted and how effectively policy works. A single monetary policy action—such as adjusting interest rates—affects agents differently, stabilizing prices and output for some while potentially increasing risks to output, employment, or financial stability for others. These variations generate multiple trade-offs: When pursuing disinflation, policymakers may need to balance the goal of lowering inflation with potential costs across sectors and regions. Conversely, a single expansionary monetary policy aiming to avoid below-target inflation at the aggregate level may perpetuate inflation or create financial imbalances in some sectors, regions or countries. The tools available to central banks—policy rates, balance sheet operations, and communication—are limited and cannot address all these trade-offs on their own. Complementary fiscal and macroprudential policies are essential in supporting the overall economy and managing sectoral or regional disparities. A clear understanding of heterogeneity within the monetary union is crucial for calibrating macroeconomic policies that support economies operating near potential, sustain inflation close to target, and mitigate the risk of creating or worsening financial or economic vulnerabilities.

This conference seeks to deepen our understanding of how heterogeneity shapes monetary policy trade-offs and of the complementary role that fiscal and macroprudential policies can play in achieving better outcomes. Bringing together policymakers, academics, and financial industry experts, it aims to foster an exchange of ideas at the intersection of policy practice and academic research. The program combines policy-oriented discussions designed to stimulate dialogue and analytical exchange with academic sessions dedicated to the presenting and critically assessing new research.

We particularly welcome theoretical and empirical papers that advance the policy debate on monetary policy design and effectiveness in a heterogeneous currency area. Submissions addressing the following topics and themes are especially encouraged (though other topics within the broader conference theme are also welcome):

• Household Heterogeneity and its Macroeconomic Impact
• Firms, Productivity Dispersion, and Sectoral Shocks
• Housing Markets, Mortgages, and Regional differences
• Labour Markets, Wage-Setting, and Employment Stability

Call for Papers (pdf): OeNB-SUERF Conference 2026

Papers should be submitted through the online submission form in PDF format by March 2, 2026. Papers published prior to the conference are not eligible, working/discussion papers are eligible.

Paper submission deadline: March 2, 2026.
Notification of acceptance: April 15, 2026.
Paper presentation: June 18-19, 2026, Vienna.

Scientific Committee
Ass.-Prof. Maximilian Breitenlechner (University of Innsbruck)
Prof. Jesus Crespo Cuaresma (WU Vienna)
Prof. Emanuel Gasteiger (TU Vienna)
Ass.-Prof. PD Michael Pfarrhofer (WU Vienna)
Prof. Paul Pichler (University of Vienna)
Prof Guido Schäfer (WU Vienna)
Prof. Philipp Schmidt-Dengler (University of Vienna)
Prof. Martin Wagner (University of Klagenfurt)