CEPR's third International Macroeconomics programme meeting took place at Sesimbra on 9/10 June. The meeting was organized by Programme Directors Daniel Cohen (Université de Paris I, and CEPREMAP) and Francesco Giavazzi (Università Bocconi). CEPR gratefully acknowledges the generosity of the Banco de Portugal in hosting the meeting, as well as support from the Esmée Fairbairn Charitable Trust. The following papers were presented:

`On the Local Stability of Sunspot Equilibria under Adaptive Learning Rules', Seppo Honkapohja (University of Helsinki and CEPR) and George Evans (LSE)

`Capital Mobility in Neoclassical Models of Growth', Xavier Sala- i-Martin (Yale University and CEPR), Robert Barro (Harvard University) and Gregory Mankiw (Harvard University)

`Monetary Policy, Liquidity and Foreign Exchange Markets: An Exploration', Alberto Giovannini (Columbia University and CEPR)

`A Growth Model of Inflation, Tax Evasion and Financial Repression', Nouriel Roubini and Xavier Sala-i-Martin (Yale University and CEPR)

`Investment Incentives in Endogenously Growing Economies', Fernando Restoy (Banco de España) and Georg Michael Rockinger (Harvard University)
`The Effects of Compulsory Schooling on Growth, Income Distribution and Welfare', Zvi Eckstein and Itzhak Zilcha (Tel Aviv University)

`Exchange Rate Bands and Optimal Monetary Accommodation under a Dirty Flow', Roel Beetsma (Universiteit Tilburg) and Frederick van der Ploeg (Universiteit van Amsterdam and CEPR)

`Monetary Independence and Optimal Intervention Policy in a Managed-Float Model of an Exchange Rate Target Zone', Lars Svensson (Institute for International Economic Studies, Stockholm, and CEPR)

`The Importance of Imprecise, but not too Imprecise, Exchange Rate Targets' Paul Weller (University of Iowa and CEPR) and Utpal Bhattacharya (University of Iowa)

`Estimating Expected Exchange Rates Under Target Zones', Zhaohui Chen (Columbia University) and Alberto Giovannini (Columbia University and CEPR)

`The Sustainability of Fiscal Policy in the EC', Michael Wickens (London Business School and CEPR)

`Time Inconsistency, Democracy and Optimal Contingent Rules', Patrick Minford (University of Liverpool and CEPR)
`Government Solvency, Ponzi Finance and the Redundancy and Usefulness of Public Debt', Willem Buiter (Yale University and CEPR) and Kenneth M Kletzer (Yale University)

`Saving, Growth and Liquidity Constraints', Tullio Jappelli (Istituto Universitario Navale, Napoli) and Marco Pagano (Università di Napoli and CEPR)

`Stylized Facts of Business Cycles in the G7 from a Real Business Cycle Perspective', Tryphon Kollintzas (Athens University of Economics and Business and CEPR) and Riccardo Fiorito (Università di Siena)

`Dynamic Optimal Taxation in Small Open Economies', Isabel Correia (Universidade Católica Portuguesa)

`Risk Sharing and Moral Hazard in a Federation of Countries', Torsten Persson (Institute for International Economic Studies, Stockholm, and CEPR) and Guido Tabellini (Università di Brescia, Innocenzo Gasparini Institute for Economic Research, Milan, and CEPR)

`Target Zone Models and the Intervention Policy: The Swedish Case', Hans Lindberg and Paul Söderlind (Institute for International Economic Studies, Stockholm)

`Are the Unemployed Unemployable?', Gilles Saint-Paul (Département et Laboratoire d'Economie Théorique et Appliquée, Paris, and CEPR)