Many developed economies have greatly expanded their public sectors in response to the recent global downturn.  Large budget deficits arising from automatic stabilizers, stimulus measures, and financial-sector bailouts have led to greater public scrutiny of tax and spending policies, heightened concerns about the sustainability of these policies going forward, and have raised questions about the credibility of sovereign debt.  Adding further complication, recovery in these economies is currently weak at best, so that policymakers face pressure to engage in seemingly conflicting actions: more accommodative monetary policy and more disciplined fiscal policy. The purpose of this conference is to bring together scholars to discuss what is known about fiscal policy, what we have learned recently, and how this knowledge applies to the current environment.  The conference organizers are Eric Young, Associate Professor of Economics at the University of Virginia, and Daniel Carroll, research economist at the Federal Reserve Bank of Cleveland.