Università Cattolica del Sacro Cuore di Milano
Economics of the EU
Prof. Raul Caruso (Università Cattolica) and Daniele Siena (Banque de France)
Course Aims:
The course aims at providing the tools to understand:
· - the main steps of the European monetary integration, the working of the common currency and of the European Central Bank, the main policy issues and challenges facing the EU in the light of the Sovereign Debt Crisis, the COVID-19 pandemic crisis and the War in Ukraine.
At the end of the course students will be able to:
· - understand the current institutional structure of the European Union;
· - apply their knowledge to evaluate the strengths and weaknesses of the European institutional set-up;
· - form their own opinions on the main economic policy issues of the European Union;
· - communicate and express opinions in the current debate with the correct, technical, terminology.
Prof. Daniele Siena
1. Advantages and disadvantages of a monetary union.
2. The common monetary policy and the European Central Bank: design and performance.
3. Monetary and Fiscal integration in the EU.
4. The European Sovereign Debt Crisis / COVID-19 pandemic Crisis / War in Ukraine: response of the ECB and of the EU.
P. De Grauwe, Economics of Monetary Union, Oxford University Press, 10/11/12 edition.
Chapter 1 (1.2, 1.3)
Chapter 3 (3.1, 3.2, 3.5, 3.6, 3.7, 3.8)
Chapter 4 (excluding 4.7, 4.8, 4.9, 4.10)
Chapter 7
Chapter 8
Chapter 9
Chapter 10 (10.2, 10.3, 10.4, 10.5, 10.6)
Lectures (slides) on topics and readings made available beforehand.
Teaching Method: Lectures on topics and readings made available beforehand.
1. Introduction - Costs and Benefits (learning from the EMU) - Slides
References
Chapter 1. De Grauwe, Paul (2014/2016/2018), Economics of Monetary Union. (Tenth/Eleventh Edition), Oxford University Press, Oxford, United Kingdom.
Wolszczak-Derlacz, Joanna. (2006), One Europe, one product, two prices-the price disparity in the EU. Center for Economic Studies - Discussion papers ces0614, Katholieke Universiteit Leuven, Centrum voor Economische Studiën
Chapter 3 (3.1, 3.2, 3.5, 3.6, 3.7, 3.8), Chapter 2 (2.1 - 1,2,3; 2.2 - 1,2; 2.3 – 1,2,3). De Grauwe, Paul (2014), Economics of Monetary Union. Tenth Edition, Oxford University Press, Oxford, United Kingdom.
Barro, R. and Gordon, D. (1983) Rules, Discretion and Reputation in a Model of Monetary Policy, Journal of Monetary Economics, 12: 101-21.
ECB Interim report (2016). The international role of the euro. (June)
Krugman, P. (1990) Geography and Trade, Cambridge, MA: MIT Press.
extra: Chapter 14 and 15. Baldwin, R. and Wyplosz, Charles (2015), The Economics of European Integration. Fifth Edition, MacGraw-Hill Eucation, Berkshire, United Kingdom.
Covid-19 Readings
Un Criterio Geografico per la riapertura per il dopo Covid-19 - April 2020
2. Microeconomic and Macroeconomic Benefits and and Convergence Criteria - Slides
References
Chapter 3 (3.1, 3.2, 3.5, 3.6, 3.7, 3.8), Chapter 7 (7.1, 7.2). De Grauwe, Paul (2016), Economics of Monetary Union. Eleventh Edition, Oxford University Press, Oxford, United Kingdom.
Chapter 16 (16.1, 16.2). Baldwin, R. and Wyplosz, Charles (2015), The Economics of European Integration. Fifth Edition, MacGraw-Hill Eucation, Berkshire, United Kingdom.
Barro, R. and Gordon, D. (1983) Rules, Discretion and Reputation in a Model of Monetary Policy, Journal of Monetary Economics, 12: 101-21.
3. Fiscal Thresholds, the Eurosystem and the ECB - Independence, Accountability and Transparency - Slides
References
Chapter 7 (7.3, 7.4), Chapter 8 (8.1, 8.2, 8.4, 8.5). De Grauwe, Paul (2014), Economics of Monetary Union. Tenth Edition, Oxford University Press, Oxford, United Kingdom.
Chapter 16 (16.1, 16.3, 16.5). Baldwin, R. and Wyplosz, Charles (2015), The Economics of European Integration. Fifth Edition, MacGraw-Hill Eucation, Berkshire, United Kingdom.
De Grauwe, Paul & Dewachter, Hans & Veestraeten, Dirk (1999), Explaining Recent European Exchange-Rate Stability, International Finance, Wiley Blackwell, vol. 2(1), pages 1-31, April.
Chapter 8 (8.5), Chapter 9 (9.2, 9.3, 9.4). De Grauwe, Paul (2014), Economics of Monetary Union. Tenth Edition, Oxford University Press, Oxford, United Kingdom.
Chapter 16 (16.3, 16.4, 16.5, 16.6). Baldwin, R. and Wyplosz, Charles (2015), The Economics of European Integration. Fifth Edition, MacGraw-Hill Eucation, Berkshire, United Kingdom.
4. The European Central Bank Monetary Policy - Slides
References
Chapter 8 (8.5), Chapter 9 (9.2, 9.3, 9.4). De Grauwe, Paul (2014), Economics of Monetary Union. Tenth Edition, Oxford University Press, Oxford, United Kingdom.
Chapter 16 (16.3, 16.4, 16.5, 16.6). Baldwin, R. and Wyplosz, Charles (2015), The Economics of European Integration. Fifth Edition, MacGraw-Hill Eucation, Berkshire, United Kingdom.
The European Central Bank website & The European Commission website – (e.g. the banking union, Stability and Growth Pact)
Chapter 10 (10.2, 10.3, 10.4, 10.5, 10.6). De Grauwe, Paul (2014), Economics of Monetary Union. Tenth Edition, Oxford University Press, Oxford, United Kingdom.
Chapter 17 (17.3, 17.4, 17.5), Baldwin, R. and Wyplosz, Charles (2015), The Economics of European Integration. Fifth Edition, MacGraw-Hill Eucation, Berkshire, United Kingdom.
Olivier J. Blanchard & Daniel Leigh, 2013. "Growth Forecast Errors and Fiscal Multipliers," American Economic Review, American Economic Association, vol. 103(3), pages 117-20, May.
5. Fiscal Policy and the Stability and Growth Pact - Slides
References
Box 8.2 - De Grauwe, Paul (2016), Economics of Monetary Union. Eleventh Edition, Oxford University Press, Oxford, United Kingdom.
Chapter 19 (19.2, 19.3.3, 19.3.4, 19.3.5). Baldwin, R. and Wyplosz, Charles (2015), The Economics of European Integration. Fifth Edition, MacGraw-Hill Eucation, Berkshire, United Kingdom.
The European Central Bank website
The European Commission website – (e.g. the banking union)
Chapter 17 (17.3, 17.4, 17.5), Baldwin, R. and Wyplosz, Charles (2015), The Economics of European Integration. Fifth Edition, MacGraw-Hill Eucation, Berkshire, United Kingdom.
Olivier J. Blanchard & Daniel Leigh, 2013. "Growth Forecast Errors and Fiscal Multipliers," American Economic Review, American Economic Association, vol. 103(3), pages 117-20, May.