Henning/p. 1 Economic Policies of the European Union
Prof. C. Randall Henning School of International Service American University
SIS 630-001 Autumn 2014
Class time: Wednesdays, 5:30-8:00 p.m.
Course Description and Prerequisites
The creation of the single currency in Europe, the euro, in 1999 was the most dramatic step toward a united Europe since the founding of the European Community and the most profound change in the international monetary system in more than a generation. The European crisis of 2010-2013 nonetheless casts great uncertainty over the ability of the monetary union to endure and, assuming it does, avoid long-term stagnation. Either outcome - successful consolidation or stagnation (or even collapse) - will affect the future of Europe and its role in the world fundamentally.
The euro crisis has confronted the European Union with many challenges. First, the countries comprising the euro area had to address the crisis in the acute phase and provide financial assistance to the stricken states. Second, the euro area member states have had to address the underlying fundamental causes of the crisis, economic imbalances and the divergence among national economies. Third, the monetary union must build the “economic” counterpart to the euro. Finally, the euro area governments must grapple with the further political integration within the union that economic union implies. Whether governments muster the necessary solidarity to preserve stability and lay the basis for long-term growth, or whether one or more members eventually abandon the euro, remains to be seen.
This course reviews the euro crisis as it unfolded over the last several years, examining the debates over the causes and responses. It then addresses the agenda for completing the institutional architecture in order to stabilize the monetary union on a long-term basis -- under the headings “banking union,” “fiscal union,” and “political union.”
Students should bring a solid understanding of microeconomic and macroeconomics to this course. Previous courses in International Economics, European integration and contemporary European history are very useful though not strictly necessary.
Copyright © 2014 C. Randall Henning
This course has the following learning outcomes: 1. Understanding the major issues concerning Europe’s monetary union. 2. Knowledge of the basic concepts, principles and theories of monetary integration and 2 22 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
European integration. 3. Skill in applying these analytical tools to assess economic policy and proposals for reform of Europe’s monetary union. 4. Demonstration of critical thinking as evidenced through both written work and oral presentation. 5. Ability to design, execute and write up a substantial research project related to the euro crisis and its aftermath.
The instructor's office hours: SIS Building, 3rd floor, Room 317; Tel: 885-1707 [to be announced] and by appointment
Grading and Requirements
Students are expected to come to each class, prepare the readings, participate in class discussions, take the exams, and research, write and submit a paper. The weights attached to these requirements are:
Participation 20% Mid-term exam 20% Research paper 30% Final exam 30%
Students should submit a prospectus on their research paper during the third class meeting that identifies the specific topic (which must be related to the course, naturally), develops the research questions in three or four good paragraphs, provides an initial list of references, and contains a one-page preliminary outline of the final paper. The paper will be due during the [eleventh] class meeting.
The final exam will be given on during the regular final exam session as scheduled by the university. Henning/p. 3
Students are also responsible for daily reading of the press for news items that relate to the course, discussing these in class and responding to questions in quizzes and examinations about them. Students thus must have daily access to the financial press.
By enrolling in this course, students agree to adhere to American University's Academic Integrity Code (AIC) in its entirety. The AIC, whose provisions are taken seriously in this course, can be found at: http://www.american.edu/american/registrar/AcademicReg/New/reg80.html
Laptop computers are allowed in the classroom at the discretion of the instructor. Students may use them to take notes and make presentations in class. If the instructor believes that they are being used inappropriately – that is, for any other purpose – the student’s laptop privilege will be revoked. The instructor reserves the right to ban the use of laptops by either individuals or the class as a whole and has done so in other courses. The use of cell phones and other personal electronic devices is completely banned during class time.
Students are encouraged to consult the instructor’s website for syllabi, weblinks and other resources: www.randallhenning.org.
Important Information for All Students
Standards of Academic Conduct: They are set forth in American University’s Academic Integrity Code (AIC). By registering for this course, you acknowledge your awareness of the AIC, and you are obliged to become familiar with your rights and responsibilities as defined by the Code. Violations of the AIC will not be treated lightly, and disciplinary actions will be taken should violations occur. Please contact me if you have any questions about the academic violations described in the Code in general or as they relate to particular requirements for this course, and I encourage you to familiarize yourself with the AIC at http://www.american.edu/academics/integrity/code.cfm. Finally, please let me know if you become aware of any violations of the AIC by other students.
In the Event of an Emergency: AU will implement a plan for meeting the needs of all members of the university community. Should the university be required to close for a period of time, we are committed to ensuring that all aspects of our educational programs will be delivered to you. These may include altering and extending the duration of the traditional term schedule to complete essential instruction in the traditional format and/or use of distance instructional methods. Specific strategies will vary from class to class, depending on the format of the course and the timing of the emergency. I will communicate class-specific information to you via AU e-mail and/or Blackboard, and you are responsible for checking your AU email on a daily basis and for keeping yourself informed of any declared emergencies. Please refer to the AU Student Portal, the AU Web site http://www.american.edu/emergency/ and the AU information line at (202) 885-1100 for university-wide information.
AU provides numerous services to help students to be successful in their coursework: the Academic Support Center, the Counseling Center, Disability Support Services, the Writing Center and Writing Lab, and the Center for Diversity and Inclusion, most of which are located in the Mary Graydon Center (MGC). Academic Support Center (x3360, MGC 243) offers study skills workshops, individual instruction, tutor referrals, Supplemental Instruction, and services for students with learning disabilities and ADHD. Writing support is available in the ASC Writing Lab 4 44 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 or in the Writing Center. If you qualify for accommodations because of a disability, please notify me in a timely manner with a letter from the Academic Support Center or Disability Support Services so that we can make arrangements to address your needs.
Counseling Center (x3500, MGC 214) offers counseling and consultations regarding personal concerns, self-help information, and connections to off-campus mental health resources.
Disability Support Services (x3315, MGC 206) offers technical and practical support and assistance with accommodations for students with physical, medical, or psychological disabilities. If you qualify for accommodations because of a disability, please notify me in a timely manner with a letter from the Academic Support Center or Disability Support Services so that we can make arrangements to address your needs.
Writing Center (x2991, Battelle-Tompkins 228) offers free, individual coaching sessions to all AU students. In your 45-minute session, a student writing consultant can help you address assignments, understand the conventions of academic writing, and learn how to revise and edit your own work. The Center offers appointments on the hour from 11 AM to 9 PM Monday through Thursday; 11 AM to 4 PM Friday, and 3 to 6 PM on Sundays.
Center for Diversity and Inclusion (x3651, MGC 2nd fl.) is dedicated to enhancing LGBTQ, Multicultural, First Generation, and Women’s experiences on campus and to advance AU’s commitment to respecting and valuing diversity by serving as a resource and liaison to students, staff, and faculty on issues of equity through education, outreach, and advocacy.
Required Texts
Paul de Grauwe, Economics of Monetary Union, 9th edition (New York: Oxford University Press, 2012).
David Marsh, The Euro: The Battle for the New Global Currency (New Haven: Yale University Press, 2011). Henning/p. 5
Carlo Bastasin, Saving Europe (Washington: Brookings, 2012).
Financial press, daily. This will be discussed at the outset of each class session.
Recommended texts: Dennis R. Appleyard, Alfred J. Field, Steven L. Cobb, International Economics, 7th edition (New York: McGraw-Hill/Irwin, 2010).
Course Outline and Readings
ER = Electronic Course Reserves on Blackboard CR = Closed Reserve Desk in Library
Introduction: The Euro Crisis in the Grand Arc of European Integration (week 1a)
What is the role of the monetary union in European integration broadly? How does the euro affect Europe’s standing in the world? What were the rationales for the monetary union? What were the causes of the recent crisis? What are the alternative scenarios for the future of the euro?
Mark A. Pollack, “Realist, Intergovernmentalist, and Institutionalist Approaches,” Chapter 1 in Oxford Handbook of the European Union, edited by Erik Jones, Anand Menon, and Stephen Weatherill (Oxford: Oxford University Press, 2012).
Recommended: Wayne Sandholtz and Alec Stone Sweet, “Neo-Functionalism and Supranational Governance,” Chapter 2 in Oxford Handbook of the European Union (above).
Section 1: The Monetary Union and Its Institutions
History and Origins (week 1b)
David Marsh, The Euro: The Battle for the New Global Currency (New Haven: Yale University Press, 2011). Skim Introduction through Chapter 2; read chapters 3-6.
De Grauwe, chap. 7 (Transition to a Monetary Union).
Wall Street Journal overview of the crisis http://www.youtube.com/watch?v=0FxFvQ_NJ3E. (watch in class)
Costs and Benefits: Theory of Optimum Currency Areas (weeks 2 and 3)
Week 2: de Grauwe, Chapters 1 and 2.
Martin Feldstein, “Europe’s Monetary Union: The Case Against EMU,” Economist, June 13, 1992, pp. 19-22. (ER) 6 66 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
Self-introductions
Week 3: de Grauwe, Chapters 3 and 4.
Recommended: Peter B. Kenen and Ellen Meade, Regional Monetary Integration (New York: Cambridge University Press, 2007). Morris Goldstein and Jacob A. Frenkel, “The Macroeconomics of Currency Zones,” in The Challenge of European Integration: Internal and External Problems of Trade and Money (Boulder, CO: Westview, 1994), Chapter 7.
European Central Bank and Monetary Policy (weeks 4 and 5)
De Grauwe, chap. 8 (ECB) and chap. 9 (Monetary Policy)
Bastasin, “Dr. Faustus,” Saving Europe, Chapter 14. (on SMP)
Paul de Grauwe, “Economic and Monetary Union,” chapter 4 in Global Economics in Extraordinary Times: Essays in Honor of John Williamson, edited by Fred Bergsten and C. Randall Henning (Washington, D.C.: Peterson Institute, 2012). (ER)
Watch in class: ECB, press conference of President Draghi announcing the Governing Council decision on the guidelines for Outright Monetary Transactions, September 2012, at http://www.ecb.europa.eu/press/pressconf/2012/html/is120906.en.html
Recommended: C. Randall Henning, “The ECB to the Rescue: The Brave New World of Central Banking in the Euro Crisis,” manuscript. (ER) Szczerbowicz, Urszula. 2012. The ECB Unconventional Monetary Policies: Have They Lowered Market Borrowing Costs for Banks and Governments?. CEPII Working Paper No 2012-36. December. Available at http://www.cepii.fr/CEPII/en/publications/wp/abstract.asp? Henning/p. 7
NoDoc=4958 ECB, The Monetary Policy of the ECB (Frankfurt: ECB, 2011), available at: http://www.ecb.int/pub/pdf/other/monetarypolicy2011en.pdf Padoa-Schioppa, Chapter 2 (“A Profile of the Eurosystem”) and Chapter 4 (Monetary Policy). ER and CR ECB, press conference by President Draghi, November 7, 2013, http://www.ecb.europa.eu/press/pressconf/2013/html/is131107.en.html Sheri Berman and Kathleen McNamara, “Bank on Democracy,” Foreign Affairs, March/April 1999. ER Waltraud Schelkle, “Economic Governance in EMU Revisited,” Journal of Common Market Studies 44 (November 2006): 669-85. ER Paul de Grauwe, “Monetary Integration since the Maastricht Treaty,” Journal of Common Market Studies 44 (November 2006): 687-709. ER C.A.E. Goodhart, “The ECB and the Conduct of Monetary Policy,” Journal of Common Market Studies 44 (November 2006): 757-777. ER
Fiscal Policy: Stability and Growth Pact and Beyond (week 6) [Mid-term Exam, TBC]
De Grauwe, Chapter 10 (Fiscal Policies).
Overview of the European Semester, “The EU’s Economic Governance Explained,” November 2013. Available at http://europa.eu/rapid/press-release_MEMO-13-979_en.htm
European Treaty on Stability, Coordination and Governance, May 2012. Available at http://www.european-council.europa.eu/media/639235/st00tscg26_en12.pdf. (Read for main rules and provisions.)
Recommended: “Six-pack? Two-pack? Fiscal compact? A short guide to the new EU fiscal governance,” March 2012. Available at http://ec.europa.eu/economy_finance/articles/governance/2012-03- 14_six_pack_en.htm Carlo Bastasin, Saving Europe (Washington: Brookings, 2012). Skim Prologue through Chapter 6 in anticipation of the next section. Willem H. Buiter, “The ‘Sense and Nonsense of Maastricht’ Revisited: What Have We Learnt about Stabilization in EMU?,” Journal of Common Market Studies 44 (November 2006): 687-710. [ER] Padoa-Schioppa, Chapter 3 (Economic Policies). ER and CR Kathleen R. McNamara, “Globalization, Institutions and Convergence: Fiscal Adjustment in Europe,” in Governance in a Global Economy, Miles Kahler and David Lake, eds. (Princeton: Princeton University Press, 2003), pp. 333-360. [ER] Jean Pisani-Ferry, “The Debate over the Economic Governance of the Euro Area,” Journal of Common Market Studies 44 (November 2006): 823-844. [ER]
Section 2: Crisis in the Euro Area
Key concepts: debt sustainability, economic and political dimensions; insolvency versus illiquidity; payments imbalances in a monetary union; sudden stops; balance-of-payments financing and facilities; cooperation among international financial institutions (troika). 8 88 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
Sovereign Debt Crisis: Greece (week 7)
Bastasin, Saving Europe, Chapters 7-14.
Lorenzo Bini Smaghi, Austerity: European Democracies against the Wall, Brussels, Centre for European Policy Studies, 2013. Chapters 2-7 (Chapter 4 is specifically on Greece). http://www.ceps.be/book/austerity-european-democracies-against-wall
Arturo Porzecanski, “Behind the Greek Default and Restructuring of 2012,” in Sovereign Debt and Debt Restructuring: Legal, Financial and Regulatory Aspects, ed. by Eugenio A. Bruno (London: Globe Business Publishing, 2013) available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2163907
Recommended: IMF, “Greece: Ex Post Evaluation of Exceptional Access under the 2010 Stand-By Arrangement,” IMF Country Report No. 13/156, June 2013. Available at http://www.imf.org/external/pubs/ft/scr/2013/cr13156.pdf D. Marsh, The Euro, Chapters 7 and 8. (pre-Greece period of the crisis) Michael Mitsopoulos and Theodore Pelagidis, Understanding the Crisis in Greece: From Boom to Bust, revised edition (New York: Palgrave MacMillan, 2012). Selected Chapters. CR Kevin Featherstone, “The Greek Sovereign Debt Crisis and EMU: A Failing State in a Skewed Regime,” Journal of Common Market Studies 49 (2011): 193-217. Yannis Varoufakis website: http://yanisvaroufakis.eu/category/greek-crisis/. Jeromin Zettelmeyer, Chiristoph Trebesch, and G. Mitu Gulati, “The Greek Debt Exchange: An Autopsy,” http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2144932.
Banking Crisis: Ireland (week 8)
Philip R. Lane, “The Irish Crisis,” in The Euro Area and the Financial Crisis, edited by Miroslav Henning/p. 9
Beblavy, David Cobham and Ludovit Odor (Cambridge University Press, 2011), available at http://www.tcd.ie/iiis/documents/discussion/pdfs/iiisdp356.pdf
Zolt Darvas, A Tale of Three Countries: Recovery after Banking Crises (Brussels: Bruegel, 2011), available at http://www.bruegel.org/publications/publication-detail/publication/663-a-tale- of-three-countries-recovery-after-banking-crises/
Bini Smaghi, Austerity, Chapters 8-12.
Bastasin, Saving Europe, chapters 15-17.
Dan O’Brien, Bailout Boys Go to Dublin, (London: BBC Radio, April 24, 2011), available at http://www.youtube.com/watch?v=AAj7Sob3cxg
Karl Whelan, “Ireland Exits Bailout with no Backstop: A Good News Story?,” Forbes, 15th November 2013. Available at http://www.forbes.com/sites/karlwhelan/2013/11/15/ireland- exits-bailout-with-no-backstop-a-good-news-story/
Recommended: IMF, “Ireland: Twelfth Review Under the Extended Arrangement and Proposal for Post-Program Monitoring,” IMF Country Report No. 13/366, December 2013. Available at http://www.imf.org/external/pubs/ft/scr/2013/cr13366.pdf Patrick Honohan, “What Went Wrong in Ireland?” (manuscript), Trinity College Dublin (May 2009), available at http://www.tcd.ie/Economics/staff/phonohan/What%20went %20wrong.pdf Klaus Regling and Max Watson, A Preliminary Report on the Sources of Ireland’s Banking Crisis, commissioned by the Government of Ireland, 2010, available at http://www.bankinginquiry.gov.ie/Preliminary%20Report%20into%20Ireland's%20Banking %20Crisis%2031%20May%202010.pdf Simon Carswell, Anglo Republic: Inside the Bank that Broke Ireland (Dublin: Penguin, 2011) CR IMF, Staff Report on the Irish Program, latest version. Economist Intelligence Unit, Country Report: Ireland, latest available at: http://country.eiu.com/Ireland (click “Reports” link, then “Generate Country Report”)
Germany and the Creditors (week 9)
Wolfgang Proissl, Why Germany Fell Out of Love with Europe, Bruegel Essay and Lecture Series. Brussels: Bruegel, July 2010. [ER]
Sebastian Dullien and Ulrike Guérot, “The Long Shadow of Ordoliberalism: Germany’s Approach to the Euro Crisis,” European Council on Foreign Relations, Berlin, February 2012, available at http://www.ecfr.eu/content/entry/the_long_shadow_of_ordoliberalism_germanys_approach_ to_the_euro_crisis.
Ulrike Guérot, “The German Election: What Europe Expects – And What Germany Will Not Do,” European Council on Foreign Relations, Berlin, September 2013, http://ecfr.eu/page/-/ECFR88_THE_GERMAN_ELECTION_AW.pdf 10 1010 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10
Hans-Werner Sinn, “Why Germany is Balking on a Bailout,” New York Times, June 12, 2012, available at http://www.nytimes.com/2012/06/13/opinion/germany-cant-fix-the-euro- crisis.html.
Recommended: Constitutional Court decision on OMT, forthcoming. Ulrike Guérot and Thomas Klau, “After Merkozy: How France and Germany Can Make Europe Work,” European Council on Foreign Relations, Berlin, May 2012, available at: http://ecfr.eu/page/-/ECFR56_FRANCE_GERMANY_BRIEF_AW.pdf.
Financial Rescue: The ESM and the ECB (week 10)
De Grauwe, chap. 5 (The Fragility of Monetary Unions) and chap. 6 (How to Complete a Monetary Union?).
European Stability Mechanism website: http://www.esm.europa.eu. Peruse this site. Read the FAQs under publications and the ESM treaty under legal documents.
Ledina Gocaj and Sophie Meunier, “Time Will Tell: The EFSF, the ESM, and the Euro Crisis,” European Integration 35 (no. 3): 239-53. (ER)
Bini Smaghi, Austerity, Chapters 14-19 (Austerity; German Europe; Eurobond Illusion; Printing Money; Buying Time).
IMF presentation on progress and challenges for Europe, October 11, 2013 at http://www.imf.org/external/mmedia/view.aspx?vid=2737478480001. And, IMF, “Is Europe on the Mend?,” at http://www.youtube.com/watch?v=-22FBDWh7Jc&noredirect=1.
Recommended: Review the readings by de Grauwe and Draghi for the week on the ECB and Monetary Policy. Text of the European Stability Mechanism treaty, available at http://www.european- Henning/p. 11
council.europa.eu/media/582311/05-tesm2.en12.pdf. Alessandro Leipold, Making the ESM Work (Brussels: Lisbon Council), available at http://www.lisboncouncil.net/publications. Bastasin, Saving Europe, chapters 18-19.
Section 3: Institutional and Political Reform to Save the Euro
Banking Union (week 11)
De Grauwe, chap. 11 (The Euro and Financial Markets).
Bini Smaghi, Austerity, chapter 13 (Banking Union).
[Update] Nicolas Véron, “A Realistic Bridge to Banking Union,” Peterson Institute Policy Brief 13-17 (June 2013) at http://www.iie.com/publications/pb/pb13-17.pdf.
Deutsche Bank. EU Monitor. “EU Banking Union: Right Idea, Poor Execution.” September 4, 2013. http://www.dbresearch.com/PROD/DBR_INTERNET_EN- PROD/PROD0000000000319670/EU+Banking+Union%3A+Right+idea, +poor+execution.PDF.
Christopher Gandrud and Mark Hallerberg, “Who Decides? Resolving Failed Banks in a European Framework,” Bruegel Policy Contribution 2013/16 (November 2013) at www.bruegel.org.
Recommended: Charles Enoch, Luc Everaert, Thierry Tressel, and Jianping Zhou, eds., From Fragmentation to Financial Integration in Europe (Washington, D.C.: IMF, 2014). European Commission, Draft Bank Resolution and Recovery Directive and Single Bank Resolution Fund (SBRF) Directive. Statement of Commissioner Michel Barnier, http://europa.eu/rapid/press-release_MEMO-13-601_en.htm?locale=en; and Council of the European Union, Council Agrees Position on Bank Resolution; http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/137627.pdf European Commission, Banking Union: Single Resolution Mechanism, Mechanism, at http://ec.europa.eu/internal_market/finances/docs/banking-union/dg-markt-factsheets- srm_en.pdf European Commission, Commission Proposes SRM, July 10, 2013, at http://europa.eu/rapid/press- release_IP-13-674_en.htm?locale=en European Commission, Draft Bank Resolution and Recovery Directive, June 2012. Available at http://www.ipex.eu/IPEXL-WEB/dossier/document/COM20120280.do European Commission, Single Bank Resolution Fund (SBRF) Directive, July 2013. Available at http://www.ipex.eu/IPEXL-WEB/dossier/document/COM20130520.do Jean Pisani-Ferry, André Sapir, Nicolas Véron, Guntram B. Wolff, “What Kind of European Banking Union?,” Bruegel Policy Contribution No. 2012/12 (June 2012), available at http://www.bruegel.org/publications/publication-detail/publication/731-what-kind-of- european-banking-union/ Thorsten Beck, ed., The Future of Banking, (VoxEU.org, October 2011), available at http://www.voxeu.org/index.php?q=node/7147 12 1212 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12
Morris Goldstein, The EU’s Implementation of Basel III: A Deeply Flawed Compromise, (VoxEU.org, May 27, 2012), available at http://www.voxeu.org/index.php?q=node/8039 Silvia Merler and Jean Pisani-Ferry, “Sudden Stops in the Euro Area,” Bruegel Policy Contribution No. 2012/06 (March 2012), available at http://www.bruegel.org/publications/publication- detail/publication/718-sudden-stops-in-the-euro-area/
Fiscal Union: Lessons from the United States (week 12)
C. Randall Henning and Martin Kessler, Fiscal Federalism: US History for Architects of Europe’s Fiscal Union (Brussels: Bruegel 2012), available at http://www.iie.com/publications/wp/wp12-1.pdf
Charles Wyplosz, “Europe’s Quest for Fiscal Discipline,” European Economy Economic Papers 498, April 2013. Available at http://ec.europa.eu/economy_finance/publications/economic_paper/2013/pdf/ecp498_en.pdf
View in class: Thomas Sargent, United States Then, Europe Now, Nobel Prize Lecture (Stockholm, 2012), available at https://files.nyu.edu/ts43/public/research/Sargent_Sweden_final.pdf
Recommended: IMF paper on fiscal federalism. Ron Chernow, Alexander Hamilton (New York: Penguin Books, 2004), chapters 14-18 (pp. 270- 361). Biography of Alexander Hamilton [ER done] Jerome W. Sheridan, “The Dèjá Vu of EMU: Considerations for Europe from Nineteenth Century America,” Journal of Economic Issues 30 (no. 4, December 1996): 1143-1161. (ER done)
Fiscal Union: Eurobonds and Stability Treaty (week 13)
Benedicta Marzinotto, André Sapir, Guntram B. Wolff, What Kind of Fiscal Union? Bruegel Policy Brief 2011/06 (November 2011), available at http://www.bruegel.org/publications/publication-detail/publication/646-what-kind-of-fiscal- union/ Henning/p. 13
Stijn Claessens, Ashoka Mody, Shahin Vallee, “Paths to Eurobonds,” Bruegel Working Paper 2012/10 (July 2012), available at http://www.bruegel.org/publications/publication- detail/publication/733-paths-to-eurobonds/
(Review readings on the new fiscal regime under the week on fiscal policy, above.)
Recommended: German Council of Economic Experts, “The European Redemption Pact: An Illustrative Guide,” available at http://www.sachverstaendigenrat- wirtschaft.de/fileadmin/dateiablage/download/publikationen/working_paper_02_2012.pdf German Council of Economic Experts, “The European Redemption Pact: Questions and Answers,” available at http://www.sachverstaendigenrat- wirtschaft.de/fileadmin/dateiablage/download/publikationen/working_paper_01_2012.pdf Jacques Delpla and Jakob von Weizsäcker, “The Blue Bond Proposal,” Bruegel Policy Brief, 2010/3 (May 2010), available at http://www.bruegel.org/publications/publication- detail/publication/403-the-blue-bond-proposal/
Political Union and Conclusion (week 14)
Jean Pisani-Ferry, André Sapir, and Guntram B. Wolff, “The Messy Rebuilding of Europe,” Bruegel Policy Brief 2012/01 (March 2012), available at http://www.bruegel.org/publications/publication-detail/publication/719-the-messy- rebuilding-of-europe/
Four Presidents’ Report, Toward A Genuine Economic and Monetary Union, December 5, 2012, at http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ec/134069.pdf.
Philippe de Schoutheete and Stefano Micossi, “On Political Union in Europe: The Changing Landscape of Decision-making and Political Accountability, CEPS Policy Brief, 21 February 2013, at http://www.ceps.be/book/political-union-europe-changing-landscape- decision-making-and-political-accountability.
Recommended: Andrew Moravcsik, “Europe After the Crisis: How to Sustain a Common Currency,” Foreign Affairs 91 (May/June 2012): 54-68, available at http://www.foreignaffairs.com/articles/137421/andrew-moravcsik/europe-after-the-crisis Bastasin, Saving Europe, chapter 20 and Epilogue. Bini Smaghi, Austerity, Chapter 20 (Sovereignty Belongs to the People) and Conclusions.
Final Examination – as scheduled by the university