Inspired by the question http://mathoverflow.net/questions/103120/does-the-moduli-space-of-smooth-curves-of-genus-g-contain-an-elliptic-curve and its amazing answers, I ask (pure out of curiosity) whether the moduli space $M_3$ of (smooth projective connected) curves of genus $3$ contains a (smooth projective connected) curve of genus $2$. The existence of such a genus two curve is (Edit: **stronger**) than the existence of a surface $S$, a genus two curve $C$ and a smooth projective non-isotrivial morphism $S\to C$ whose fibres are genus three curves. If the answer is positive, how explicit can our answer be made? I'm already aware of the fact that $M_g$ contains a complete curve for all $g\geq 3$. For instance, in the paper by Chris Zaal http://dare.uva.nl/document/38546 many curves of some genus (I think 513) are shown to embed into $M_3$. Of course, by Shafarevich' conjecture, if $K(C)$ denotes the function field of $C$, there are only finitely many $K(C)$-isomorphism classes of genus three curves over $K(C)$ with good reduction over $C$. I'm asking whether there exists some genus two curve $C$ such that there exists a genus three curve over $K(C)$ with good reduction over $C$. **Edit:** the arithmetic analogue also has a negative answer. The latter (**weaker**) phrasing of my question allows us to formulate an arithmetic analogue of the above question. (I know that I'm considering function fields over $\mathbf{C}$ and that some of you might argue function fields over $\mathbf{F}_p$ are a better analogue of number fields.) This arithmetic analogue reads as follows. There exists a number field of "genus two" such that there exist a genus three curve over $K$ with good reduction over the ring of integers of $K$. Here a number field of "genus two" should be a number field of absolute discriminant $e^2$. I'll take this to mean discriminant at most $8$. **Arithmetic analogue. (Abrashkin-Fontaine)** There do not exist smooth abelian schemes over the ring of integers of a number field of absolute discriminant at most 8. There are many related questions I'd also like to ask. For example, what is the minimal $g$ such that $M_g$ contains a genus two curve? Or, what is the minimal $g$ such that $M_3$ contains a genus $g$ curve? And, finally, is there an example of a complete curve in $M_g$ which is defined over $\overline{\mathbf{Q}}$? (Edit: The answer to the last question is positive. This is explained in the comments below.)