Admission requirements
The course is designed for all MA EUS students, regardless of background, though a basic knowledge of macroeconomics and the institutional set-up of the European Union is advised in order to complete the course within the timeframe allocated.
Description
Economic and Monetary Union is one of the most dynamic policy area’s in the European Union, both in terms of new players (enlargement of the Euro zone) and in terms of evolving ‘rules of the game’. EMU is intended to be a main pillar of economic growth and stability within the EU. Partly as a consequence of the credit crunch and financial crisis, and the budgetary situation in for example Greece, a revived debate about the functioning of EMU – and its future – has originated, which will receive ample attention during the course.
Because this policy area is somewhat of a ‘black box’ to the average observer, attention will also be given to easily finding relevant resources (Council documents for example). Guiding questions are: why does Europe need EMU? How does it really work? Does it need improvement, and if so: how? To answer these questions, the course aims to comprehensively acquaint students to (see course outline):
The OCA theory: costs and benefits of EMU
Entry criteria to enter the eurozone (i.a. ERM II)
The Stability and Growth Pact
Procedures and decision-making
The ECB and monetary policy
Institutional design and legislation
Course objectives
Students will:
understand the most relevant developments within EMU in the last decade
understand and apply OCA theory
understand the Stability and Growth Pact, including the legal aspects
understand political aspects of EMU and monetary policy
Timetable
See Timetable
Mode of instruction
12 tutorials of 2 hours, home reading, home writing
Assessment method
Students haven taken this course will demonstrate their understanding of the material by writing a paper on a specific ‘case’. A macro-economic, institutional/political or legal approach may be chosen. A presentation will precede the final paper.
Blackboard
Not applicable
Reading list
Handbook to this course is: De Grauw, P., Economics of Monetary Union , Oxford (2009 or 2007)
Handouts are provided by the tutors containing the relevant legal texts and texts agreed by the Eurogroup and/or European Council
Dellas, H. & G.S. Tavlas, “An optimum-curruncy-area odyssey”, Journal of International Money and Finance 28 (2009) pp. 1117-1137
Jonung, L. & E. Drea, “The euro :It can’t happen. It’s a bad idea. It won’t last. US economists on the EMU, 1989-2002” EC Economic Papers (December 2009)
De Grauwe, P. & G. Schnabl, “EMU Entry Strategies for the New Member States”, Intereconomics , Volume 39-5 (2004)
Palazuelos-Martínez, M., “Understanding the rationale of the stability and growth pact”, ACES Cases , No. 2007.2
Enderlein, H., A. Verdun, D. Hodson et al., “Ten years of EMU: what have we learned in political science?” Journal of European Public Policy 16-4 (2009) 490-507
Matthes, J., “Ten years EMU: reality test for the OCA endogeneity hypothesis, economic divergences and future chanllenges”, Intereconomics , 44-2 (March/April 2009) 114-128
Registration
Enrollment via uSis