Michele CHANG Gabriel GLŐCKLER Assistant: Sébastien COMMAIN

European Political and Administrative Studies Academic Year 2015-2016 Professors: Michele CHANG Gabriel GLŐCKLER Assistant: Sébastien COMMAIN

OPTIONAL COURSE

TOWARDS A EUROPEAN ECONOMIC GOVERNMENT? THE EU’S ECONOMIC AND MONETARY POLICIES

Course Objectives

The purpose of this course is to provide students with a theoretically informed overview of the process of economic and monetary integration in the EU. The level of cooperation that EU member states have remains unparalleled in international organizations and has contributed to the creation of the world’s largest market. Despite its success, economic and monetary integration has also been criticized as delivering disappointing results, moving too quickly, moving too slowly, and contributing to Europe’s democratic deficit. In what ways has economic and monetary integration succeeded? In what ways has it failed? And can or should Europe serve as a model for other regions?

The first part of the course provides an overview to the study of the international monetary system in general and European monetary cooperation in particular. After this introduction to key empirical events and theoretical concepts, the course will focus on the institutions and policies of EMU. Topics will include the major institutions governing EMU (such as the European Central Bank and the Eurogroup), the economic policies underpinning monetary union (including the Stability and Growth Pact and financial market integration), and the consequences of EMU for both participating states and non-Eurozone countries (both inside and outside of the EU).

Assignments and Grading

Students are expected to do all of the required readings before the class meets.

• 1 oral presentation 25%

Students will give a 15 minute oral presentation on a topic of their choice, followed by a 15 minute discussion that he/she will lead. A sign-up sheet will be distributed on the first day of class. All topics must be approved by the professor.

• 1 paper 25%

Students will continue to develop the topic of their oral presentation by writing a paper of 3,500 words +/- 10% on the same topic.

Note:

1. Papers can only be submitted once. Only the first version received will be corrected.

2. Citations: Rules regarding quotations, referencing and plagiarism applying to the thesis also apply to the essays/papers.

3.Word limit: a) All footnotes must be included in the word count, but annexes, cover page and the bibliography are excluded. b) Tables should be in word-format and will be counted as part of the word-count. Graphs can be in pdf or image format.

4. Language: All presentations must be given and all papers must be submitted in the language of the course.

4.Penalties: a) Regarding the non-respect of the word limit, for this course, 1 point will be subtracted from the mark that would have been awarded for every 100 words (or part thereof) either below 3,250 or above 3,750. b)Regarding late submissions: for every 24 hours of delay, or part thereof, after the specified submission deadline, 2 points will be deducted from the final mark of the paper.

• Final exam 50%

A final oral exam will be administered during the exam period.

Outline of the Course

1. Introduction to the political economy of economic and monetary union 2. Monetary integration 3. Fiscal and economic policy coordination 4. Financial market integration

Sources

Each section will contain a list of suggested readings that will further develop the themes discussed in class. Readings prefaced by an asterisk * are required.

The main text used will be Chang, M. (forthcoming). Economic and Monetary Union (Basingstoke: Palgrave).

Those who are unfamiliar with economic and financial concepts and terms should consult the following glossaries for specific definitions:

Glossary of Financial Terms BBC Financial Glossary http://www.bbc.co.uk/news/business-15060411 European Parliament’s Financial Crisis glossary http://www.europarl.europa.eu/sides/getDoc.do?pubRef=- //EP//TEXT+IM-PRESS+20100414FCS72750+0+DOC+XML+V0//EN ECB Glossary http://www.ecb.int/home/glossary/html/act1a.en.html Financial Times Lexicon http://lexicon.ft.com/

In addition, it may be useful to read portions of the following textbooks for further study:

2 De Grauwe, P. (2012). Economics of Monetary Union Oxford, Oxford University Press De Haan, J., S. Oosterloo, and D. Schoenmaker (2015). Financial Markets and Institutions: A European Perspective, third edition. Cambridge, Cambridge University Press Valdez, S. and P. Molyneux (2010). An Introduction to Global Financial Markets. Basingstoke, Palgrave Macmillan.

Detailed Plan with Readings (*indicates required reading)

1.) 7 January, Introduction to the political economy of economic and monetary union (session 1)

*Hodson, D. (2015). "Eurozone Governance: Deflation, Grexit 2.0 and the Second Coming of Jean-Claude Juncker." JCMS: Journal of Common Market Studies. *Juncker, J.-C., D. Tusk, et al. (2015). Completing Europe's Economic and Monetary Union. E. Commission. Brussels.

McLeay, M., A. Radia, et al. (2014). "Money in the modern economy: an introduction." Bank of England Quarterly Bulletin Q1. McLeay, M., A. Radia, et al. (2014). "Money creation in the modern economy." Bank of England Quarterly Bulletin Q1

Commission vision of EMU since crisis http://www.youtube.com/watch?v=0B3zNcFYqj0&feature=youtu.be

2.) 13 January (with Gabriel Glöckler), Monetary integration : Institutions (session 2)

*Chang, M. (forthcoming) Economic and Monetary Union Basingstoke, Palgrave Macmillan, chapter 4 *ECB (2010). "THE ECB’S RELATIONS WITH EUROPEAN UNION INSTITUTIONS AND BODIES –TRENDS AND PROSPECTS." Monthly Bulletin *Yiangou, J., M. O’Keeffe, et al. (2013). "‘Tough love’: how the ECB’s monetary financing prohibition pushes deeper euro area integration." Journal of European Integration 35(3): 223-237

Alcidi, C., A. Giovannini, et al. (2014). "Enhancing the Legitimacy of EMU Governance." CEPS Special Reports. Auel, K. and O. Höing (2014). "Parliaments in the Euro Crisis: Can the Losers of Integration Still Fight Back?" JCMS: Journal of Common Market Studies 52(6): 1184-1193. Bauer, M. W. and S. Becker (2014). "The Unexpected Winner of the Crisis: The European Commission’s Strengthened Role in Economic Governance." Journal of European Integration 36(3): 213-229. Begg, I. (2008). "Economic Governance in an Enlarged Euro Area." European Economy Economic Papers 311. ECB. http://www.ecb.europa.eu/press/html/irish-letters.en.html Bickerton, C. J., D. Hodson, et al. (2014). "The New Intergovernmentalism: European Integration in the Post- Maastricht Era." JCMS: Journal of Common Market Studie Copeland, P. and S. James (2014). "Policy windows, ambiguity and Commission entrepreneurship: explaining the relaunch of the European Union's economic reform agenda." Journal of European Public Policy 21(1): 1-19. Crespy, A. and V. Schmidt (2014). "The clash of Titans: France, Germany and the discursive double game of EMU reform." Journal of European Public Policy 21(8): 1085-1101. Hodson, D. (2015). "The IMF as a de facto institution of the EU: A multiple supervisor approach." Review of International Political Economy 22(3): 570-598.

3 Jabko, N. (2014). The Divided Sovereignty of the Eurozone. Beyond the Regulatory Polity? The European Integration of Core State Powers. P. Genschel and M. Jachtenfuchs. Oxford, Oxford University Press: 124-141. Noord, P. v. d., B. Döhring, et al. (2008). "The Evolution of Economic Governance in EMU." European Economy Economic Papers 328. O'Keeffe, M., M. Salines, et al. (2015). "The European Parliament's strategy in EU economic and financial reform." Journal of European Public Policy: 1-19. Puetter, U. (2012). "Europe's deliberative intergovernmentalism: The role of the Council and European Council in EU economic governance " Journal of European Public Policy 19(2): 161-178. Puetter, U. (2014). The European Council and the Council: New intergovernmentalism and institutional change. Oxford, Oxford University Press. Rittberger, B. (2014). "Integration without Representation? The European Parliament and the Reform of Economic Governance in the EU." JCMS: Journal of Common Market Studies 52(6): 1174-1183 Marion Salines, G. G. Z. T. (2012). "Existential crisis, incremental response: the eurozone's dual institutional evolution 2007–2011." Journal of European Public Policy 12(5).

European Central Bank Bénassy Quéré and E. Turkisch (2009). "The ECB Governing Council in an Enlarged Euro Area " JCMS: Journal of Common Market Studies 47(1): 25-53. Bibow, J. (2013). "At the crossroads: the euro and its central bank guardian (and saviour?)." Cambridge Journal of Economics 37(3): 609-626. Buiter, W. and E. Rahbari (2012). "The European Central Bank as Lender of Last Resort for Sovereigns in the Eurozone." JCMS: Journal of Common Market Studies 50: 6-35. De Grauwe, P. (2011). "The European Central Bank: Lender of Last Resort in the Government Bond Markets?" CESifo Working Paper No. 3569. Henning, C. R. (2016). The ECB as a Strategic Actor: Central Banking in a Politically Fragmented Monetary Union. Political and Economic Dynamics of the Eurozone Crisis. J. A. Caporaso and M. Rhodes. Oxford, Oxford University Press. Howarth, D. (2012). Defending the Euro: Unity and Disunity among Europe's Central Bankers. European Disunion: Between Sovereignty and Solidarity. J. Hayward and R. K. W. Wurzel. Basingstoke, Palgrave Macmillan. Kaltenthaler, K., C. J. Anderson, et al. (2010). "Accountability and Independent Central Banks: Europeans and Distrust of the European Central Bank." JCMS: Journal of Common Market Studies 48(5): 1261- 1281. Micossi, S. (2015). "The Monetary Policy of the European Central Bank (2002-2015)." CEPS Special Reports 109. Rey, H. (2015). "Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence." NBER Working Paper No. 21162.

3.) 10 February and 8 March, Monetary Integration: Evolution and external dimension (sessions 3-4)

*Andor, L. (2013). "Can we move beyond the Maastricht orthodoxy? ." voxeu.org. Available at: http://www.voxeu.org/article/can-we-move-beyond-maastricht-orthodoxy *Chang, M. (forthcoming) Economic and Monetary Union Basingstoke, Palgrave Macmillan, chapters 2, 8, 9 *Verdun, A. (2015). "A historical institutionalist explanation of the EU's responses to the euro area financial crisis." Journal of European Public Policy 22(2): 219-237.

Chang, M. (2014). The EU and the Euro. Handbook of the International Political Economy of Monetary Relations T. Oatley and W. K. Winecoff. Cheltenham, UK, Edward Elgar. Chang, M., G. Menz, et al., Eds. (2014). Redefining European Economic Governance. Abingdon, Routledge. European Commission, http://ec.europa.eu/archives/emu_history/index_en.htm

4 http://ec.europa.eu/economy_finance/economic_governance/timeline/timeline_web.pdf Gambarotto, F. and S. Solari (2015). "The peripheralization of Southern European capitalism within the EMU." Review of International Political Economy 22(4): 788-812. Majone, G. (2014). Rethinking the Union of Europe Post-Crisis: Has Integration Gone Too Far? Cambridge, Cambridge University Press. Pelkmans, J. (2014). "Designing a Genuine EMU: Which "Unions" for EU and Eurozone?" Bruges European Economic Policy Briefings 34. Pisani-Ferry, J. (2013). "The known unknowns and unknown unknowns of European Monetary Union." Journal of International Money and Finance 34(0): 6-14. Sadeh, T. and A. Verdun (2009). "Explaining Europe's Monetary Union: A Survey of the Literature." International Studies Review 11(2): 277-301. Steinberg, F. and M. Vermeiren (2015). "Germany’s Institutional Power and the EMU Regime after the Crisis: Towards a Germanized Euro Area?*." Journal of Common Market Studies DOI: 10.1111/jcms.12255.

Video on the global financial crisis: http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/

Euro outs Cohen, B. J. (2007). "Enlargement and the international role of the euro." Review of International Political Economy 14(5): 746 - 773. Connolly, R. and C. A. Hartwell (2014). "Developments in the Economies of Member States Outside the Eurozone." JCMS: Journal of Common Market Studies 52: 202-218. Leuffen, D., B. Rittberger, et al. (2013). Differentiated Integration: Explaining Variation in the European Union. Basingstoke, Palgrave Macmillan.

International role of the euro Chey, H.-k. (2012). "Theories of International Currencies and the Future of the World Monetary Order." International Studies Review 14(1): 51-77. Cohen, B. J. (2010). The Future of Global Currency: The Euro Versus the Dollar, Routledge. Cohen, B. J. (2012). "The future of the euro: Let's get real." Review of International Political Economy 19(4): 689-700.Eichengreen, B. (2012). "Is the Age of Dollar Dominance Coming to an End?" DWS Global Financial Institute European Central Bank. (annual). Review of the International Role of the Euro Germain, R. and H. Schwartz (2014). "The political economy of failure: The euro as an international currency." Review of International Political Economy 21(5): 1095-1122. Giovannini, A., D. Gros, et al. (2012). "External Representation of the Euro Area." McNamara, K. R. (2009). "A rivalry in the making? The Euro and international monetary power." Review of International Political Economy 15(3): 439-459. Otero-Iglesias, M. (2014). The Euro, The Dollar and the Global Financial Crisis: Currency challenges seen from emerging markets. Abingdon, Routledge.

*19 February conference, EMU’S CRITICS--attendance mandatory *

4.) 16 March, 22 March Fiscal and Economic Policy Coordination (session 5-6)

*Buti, M. and N. Carnot (2013). "The debate on fiscal policy in Europe: beyond the austerity myth." ECFIN Economic Brief(20). *Chang, M. (forthcoming) Economic and Monetary Union Basingstoke, Palgrave Macmillan, chapters 6-7

5 Barnard, C. (2012). "The Financial Crisis and the Euro Plus Pact: A Labour Lawyer’s Perspective." Industrial Law Journal 41(1): 98-114. Blavoukos, S. and G. Pagoulatos (2008). "Negotiating in Stages: National Positions and the Reform of the Stability and Growth Pact." European Journal of Political Research 41: 247-267. Blyth, M. (2013). Austerity: The History of a Dangerous Idea. Oxford, Oxford University Press. Chang, M. (2013). "Fiscal Policy Coordination and the Future of the Community Method." Journal of European Integration 35(3). Commission, E. (2013). "Beyond the six pack and two pack: Economic governance explained." Copeland, P. and S. James (2014). "Policy windows, ambiguity and Commission entrepreneurship: explaining the relaunch of the European Union's economic reform agenda." Journal of European Public Policy 21(1): 1-19. Craig, P. (2012). "The Stability, Coordination and Governance Treaty: Principle, Politics and Pragmatism." European Law Review 3. Crespy, A. and G. Menz, Eds. (2015). Social Policy and the Eurocrisis, Palgrave Macmillan. Daniele, G. and B. Geys (2015). "Public support for European fiscal integration in times of crisis." Journal of European Public Policy 22(5): 650-670. Darvas, Z. and E. Vihriälä (2013). "Does the European Semester deliver the right policy advice?" Bruegel Policy Contribution. De Grauwe, P. and Y. Ji (2014). "How much Fiscal Discipline in a Monetary Union?" Journal of Macroeconomics 39, Part B(0): 348-360. Dyson, K. (2012). Economics and Monetary Disunion? European Disunion: Between Sovereignty and Solidarity. J. Hayward and R. Wurzel. Basingstoke, Palgrave Macmillan. Feldstein, M. (2013). "Coordination in the European Union." NBER Working Paper No. 18672. Frayne, C., E. Jaffee, et al. (2013). "Building a Strengthened Fiscal Framework in the European Union: A Guide to the Stability and Growth Pact." European Economy, Occasional Papers 150 Frayne, C. and S. Riso (2013). "Vade mecum on the Stability and Growth Pact." European Economy, Occasional Papers 151. Gabrisch, H. and K. Staehr (2012). "The Euro Plus Pact: Competitiveness and External Capital Flows in the EU Countries." IOS Working Paper No. 324. Hallerberg, M. (2014). Why Is there Fiscal Capacity but Little Regulation in the US, but Regulation and Little Fiscal Capacity in Europe? The Global Financial Crisis as a Test Case. Beyond the Regulatory Polity? The European Integration of Core State Powers. P. Genschel and M. Jachtenfuchs. Oxford, Oxford University Press: 87-104. Hallerberg, M. (2016). Fiscal Governance and Fiscal Outcomes under EMU before and After the Crisis. Political and Economic Dynamics of the Eurozone Crisis. J. A. Caporaso and M. Rhodes. Oxford, Oxford University Press. Hallett, A. H. and S. E. H. Jensen (2012). "Fiscal governance in the euro area: institutions vs. rules." Journal of European Public Policy 12(5). Hancké, B. (2013). Unions, Central Banks, and EMU: Labour Market Institutions and Monetary Integration in Europe. Oxford, Oxford University Press. Heipertz, M. and A. Verdun (2010). Ruling Europe: Theory and Politics of the Stability and Growth Pact. Cambridge, Cambridge University Press. Johnston, A. and A. Regan (2015). "European Monetary Integration and the Incompatibility of National Varieties of Capitalism." JCMS: Journal of Common Market Studies. Mabbett, D. and W. Schelke (2016). Searching Under the Lamp-Post: The Evolution of Fiscal Surveillance. Political and Economic Dynamics of the Eurozone Crisis. J. A. Caporaso and M. Rhodes. Oxford, Oxford University Press. Moschella, M. (2014). "Monitoring Macroeconomic Imbalances: Is EU Surveillance More Effective than IMF surveillance?" JCMS: Journal of Common Market Studies 52(6): 1273-1289. Peers, S. (2012). "The Stability Treaty: Permanent Austerity or Gesture Politics?" European Constitutional Law Review 8(3): 404-441. Savage, J. D. and A. Verdun (2015). "Strengthening the European Commission's budgetary and economic surveillance capacity since Greece and the euro area crisis: a study of five Directorates-General." Journal of European Public Policy: 1-18.

6 Schelke, W. (2013). Fiscal integration by default. Beyond the Regulatory Polity. The European Integration of Core State Powers. P. Genschel and M. Jachtenfuchs. Oxford Oxford University Press. Schuknecht, L., P. Moutot, et al. (2011). "The Stability and Growth Pact: Crisis and Reform." ECB Occasional Paper Series 129. Seng, K. and J. Biesenbender (2012). "Reforming the Stability and Growth Pact in Times of Crisis." Journal of Contemporary European Research 8(4): 451-469. Smaghi, L. B. (2013). Austerity: European democracies against the wall. Brussels, Centre for European Policy Studies. Verdun, A. (2015). "A historical institutionalist explanation of the EU's responses to the euro area financial crisis." Journal of European Public Policy 22(2): 219-237. Wyplosz, C. (2012). "Fiscal Rules: Theoretical Issues and Historical Experiences." NBER Working Paper 17884. Zeitlin, J. and B. Vanhercke (2014). "Socializing the European Semester? Economic Governance and Social Policy Coordination in Europe 2020." Swedish Institute for European Policy Studies (SIEPS) Report 7.

5) 29 March, 31 March and 1 April (with Gabriel Glöckler), Financial Market Integration and the Sovereign Debt Crisis and Conclusion (session 7-8)

*Chang, M. (forthcoming) Economic and Monetary Union Basingstoke, Palgrave Macmillan, chapter 5 *Ioannou, D., P. Leblond, et al. (2015). "European integration and the crisis: practice and theory." Journal of European Public Policy 22(2): 155-176. *Pisani-Ferry, J. (2012). "The Euro crisis and the new impossible trinity " Bruegel Policy Contribution(2012/01) *Quaglia, L. (2013). "Financial regulation and supervision in the European Union after the crisis." Journal of Economic Policy Reform 16(1): 17-30.

Arghyrou, M. G. and A. Kontonikas (2011). "The EMU sovereign-debt crisis: Fundamentals, expectations and contagion." European Economy, Economic Papers 46. Bijlsma, M. and G. T. J. Zwart (2013). "The changing landscape of financial markets in Europe, the United States and Japan " Bruegel Working Paper. Chang, M. and P. Leblond (2015). "All in: Market expectations of eurozone integrity in the sovereign debt crisis." Review of International Political Economy 22(3): 626-655. Dawson, M. (2015). "The Legal and Political Accountability Structure of ‘Post-Crisis’ EU Economic Governance." JCMS: Journal of Common Market Studies De Grauwe, P. and Y. Ji (2012). "Mispricing of Sovereign Risk and Multiple Equilibria in the Eurozone." CEPS Working Documents 361. de Larosière, J. (2009). "The High Level Group on Financial Supervision in the EU Report." Dellepiane-Avellaneda, S. (2015). "The Political Power of Economic Ideas: The Case of ‘Expansionary Fiscal Contractions’." The British Journal of Politics & International Relations 17(3): 391-418. Donnelly, S. (2014). "Power Politics and the Undersupply of Financial Stability in Europe." Review of International Political Economy 21(4): 980-1005. Dyson, K. (2014). States, Debt, and Power: 'Saints' and 'Sinners' in European History and Integration. Oxford, Oxford University Press. ECB (annual). Financial Integration in Europe. Frankfurt, European Central Bank. Eichengreen, B., N. Jung, et al. (2014). "The Eurozone Crisis: Phoenix Miracle or Lost Decade?" Journal of Macroeconomics 39, Part B(0): 288-308. Glencross, A. (2014). "Bleak Prospects? Varieties of Europessimism and their Application to the Eurozone Debt Crisis and the Future of Integration." Journal of European Integration 36(4): 393-408. Gren, J., D. Howarth, et al. (2015). "Supranational Banking Supervision in Europe: The Construction of a Credible Watchdog." JCMS: Journal of Common Market Studies 53: 181-199. Hall, P. A. (2014). "Varieties of Capitalism and the Euro Crisis." West European Politics 37(6): 1223-1243.

7 Hardie, I. and D. Howarth, Eds. (2013). Market-Based Banking and the International Financial Crisis. Oxford, Oxford University Press. Howarth, D. and L. Quaglia (2013). "Banking on Stability: The Political Economy of New Capital Requirements in the European Union." Journal of European Integration 35(3): 333-346. Howarth, D. and L. Quaglia (2015). "The political economy of the euro area's sovereign debt crisis: introduction to the special issue of the Review of International Political Economy." Review of International Political Economy: 1-28. Jones, E. (2014). The Year the European Crisis Ended. Basingstoke, Palgrave Macmillan. Jones, E. (2015). Europe's Systemic Crisis. (Oxford: Oxford University Press). Lannoo, K. (2013). "The New Financial Regulatory Paradigm: A transatlantic perspective." CEPS Policy Brief. Matthijs, M. and K. McNamara (2015). "The Euro Crisis’ Theory Effect: Northern Saints, Southern Sinners, and the Demise of the Eurobond." Journal of European Integration 37(2): 229-245. McPhilemy, S. (2014). "Integrating rules, disintegrating markets: the end of national discretion in European banking?" Journal of European Public Policy 21(10): 1473-1490. Mourlon-Druol, E. (2014). "Don’t Blame the Euro: Historical Reflections on the Roots of the Eurozone Crisis." West European Politics 37(6): 1282-1296. Mugge, D. (2013). "The Political Economy of Europeanized Financial Regulation " New Political Economy 20(3): 458-470. Mügge, D., Ed. (2014). Europe and the Governance of Global Finance. Oxford, Oxford University Press. Nedergaard, P. and H. Snaith (2015). "‘As I Drifted on a River I Could Not Control’: The Unintended Ordoliberal Consequences of the Eurozone Crisis." JCMS: Journal of Common Market Studies Niemann, A. and D. Ioannou (2015). "European economic integration in times of crisis: a case of neofunctionalism?" Journal of European Public Policy 22(2): 196-218. Pisani-Ferry, J. (2014). Utopia Untangled: The Euro Crisis and Its Aftermath. Oxford, Oxford University Press. Quaglia, L. (2014). The European Union and Global Financial Regulation. Oxford, Oxford University Press. Ryner, M. (2015). "Europe's ordoliberal iron cage: critical political economy, the euro area crisis and its management." Journal of European Public Policy 22(2): 275-294. Schoenmaker, Dirk (2009), “The Trilemma of Financial Stability”, Working Paper, SSRN #1340395 Schwarzer, D. (2015). "Building the euro area's debt crisis management capacity with the IMF." Review of International Political Economy 22(3): 599-625. Schimmelfennig, F. (2014). "European Integration in the Euro Crisis: The Limits of Postfunctionalism." Journal of European Integration 36(3): 321-337. Schimmelfennig, F. (2015). "Liberal intergovernmentalism and the euro area crisis." Journal of European Public Policy 22(2): 177-195. Thiemann, M. (2014). "In the Shadow of Basel: How Competitive Politics Bred the Crisis." Review of International Political Economy 21(6): 1203-1239 Underhill, G. R. D. (2014). "The Emerging Post-Crisis Financial Architecture: The Path-Dependency of Ideational Adverse Selection." The British Journal of Politics & International Relations. Wallace, P. (2015). The Euro Experiment. Cambridge, Cambridge University Press.

Banking Union Beck, T., Ed. (2012). Banking Union for Europe - Risks and Challenges Vox. Carmassi, J., C. D. Noia, et al. (2012). "Banking Union: A Federal Model for the European Union with Prompt Corrective Action." CEPS Policy Brief 282. Darvas, Z. and G. B. Wolff (2013). "Should non-euro area countries join the single supervisory mechanism?" Bruegel Policy Contribution(2013/6). De Rynck, S. (2015). "Banking on a union: the politics of changing eurozone banking supervision." Journal of European Public Policy: 1-17. Enoch, C., L. Everaert, et al., Eds. (2014). From Financial Fragmentation to Financial Integration in Europe. Washington, DC, IMF. Epstein, R. A. and M. Rhodes (2016). International in Life, National in Death? Banking Nationalism on the Road to Banking Union. Political and Economic Dynamics of the Eurozone Crisis. J. A. Caporaso and M. Rhodes. Oxford, Oxford University Press.

8 Fabbrini, S. (2015). Which European Union? Europe After the Euro Crisis. Cambridge, Cambridge University Press. Feldstein, M. (2013). "Coordination in the European Union." NBER Working Paper No. 18672. Gandrud, C. and M. Hallerberg (2015). "Does Banking Union Worsen the EU's Democratic Deficit? The Need for Greater Supervisory Data Transparency." JCMS: Journal of Common Market Studies Gros, D. and D. Schoenmaker (2014). "European Deposit Insurance and Resolution in the Banking Union." JCMS: Journal of Common Market Studies 52(3): 529-546. Howarth, D. and L. Quaglia (2013). "Banking Union as Holy Grail: Rebuilding the Single Market in Financial Services, Stabilizing Europe's Banks and ‘Completing’ Economic and Monetary Union." JCMS: Journal of Common Market Studies 51: 103-123. Howarth, D. and L. Quaglia (2014). "The Steep Road to European Banking Union: Constructing the Single Resolution Mechanism." JCMS: Journal of Common Market Studies 52: 125-140. Quaglia, L. (2014). The European Union and Global Financial Regulation. Oxford, Oxford University Press. Veron, N. (2014). L’Union bancaire, un succès européen. Paris, En Temps Réel.

9 Official Websites European Central Bank, http://www.ecb.int/home/html/index.en.html European Commission http://europa.eu/pol/emu/index_en.htm • DG ECFIN: http://ec.europa.eu/economy_finance/euro/emu/index_en.htm • Economic governance http://ec.europa.eu/europe2020/priorities/economic- governance/index_en.htm • Europe 2020 http://ec.europa.eu/europe2020/index_en.htm Council • Ecofin, http://www.consilium.europa.eu/policies/ecofin?lang=en • Eurogroup, http://www.consilium.europa.eu/en/council-eu/eurogroup/ • Economic and Financial Committee, http://europa.eu/efc/index_en.htm • Economic Policy Committee, http://europa.eu/epc/index_en.htm European Parliament's Economic and Monetary Affairs Committee, http://www.europarl.europa.eu/activities/committees/homeCom.do?body=ECON

Blogs Project Syndicate, www.project-syndicate.org Voxeu, voxeu.org

News Eurointelligence, www.eurointelligence.com (requires paid subscription) Financial Times, www.ft.com

Think Tanks Bruegel, www.bruegel.org Centre for European Policy Studies, www.ceps.eu

10 Key terms

MONETARY POLICY Monetary policy Interest rates Exchange rates Inflation Central bank Gold Standard Bretton Woods Snake European Monetary System Maastricht Treaty convergence criteria Exchange Rate Mechanism crisis International Monetary Fund Global imbalances European Financial Stability Facility European Stability Mechanism Securities Market Programme Long-term Refinancing Operations Outright Monetary Transaction Black Wednesday

Economic theories: optimum currency area; Mundell 2 and self-fulfilling speculative attacks; Mundell- Fleming conditions/impossible trinity; new impossible trinity; time inconsistency problem

Political economy theories: hegemonic stability theory / German dominance; constructivism / stability culture; liberal intergovernmentalism; neofunctionalism; historical institutionalism

FISCAL AND ECONOMIC POLICY Fiscal policy Deficits Debt Stability and Growth Pact Six Pack Broad Economic Policy Guidelines Lisbon Agenda Open Method of Coordination Treaty on Stability, Coordination and Governance Euro Plus Pact Europe 2020 European Semester Macroeconomic Imbalances Procedure Two Pack

Economic theories: neoclassical; Keynesianism; Ordoliberalism Political economy theories: stability culture; varieties of capitalism

11 FINANCIAL POLICY Credit ratings agency Commercial bank Investment bank Special purpose vehicle Securitization Leverage Collateralized debt obligation Credit default swap Originate-to-distribute model Wholesale or interbank markets Basel agreements Shadow banking Single Supervisory Mechanism Banking union European Systemic Risk Board European System of Financial Supervision Financial Stability Board Lamfalussy Process Financial Services Action Plan Single Resolution Mechanism

Economic theories: efficient markets hypothesis, self-fulfilling speculative attacks

Political economy theories: constructivism; hegemonic stability theory; liberal intergovernmentalism; varieties of capitalism

12 Guidelines for oral presentations:

You will have a maximum of 15 minutes for your presentation on a topic of your choosing. Some suggestions include a policy (such as SGP, Lisbon Strategy), an institution (like the ECB or Euro Group) or the governance structure of EMU more generally, or broader issues facing the EU at this time (like the EU’s ability to speak with a single voice in this domain).

Your presentation should answer the following questions • What is the current state of this topic/policy/issue? Has this changed substantially over time? How can we explain the stability/instability? What were the main policy choices/tradeoffs? • What are the major issues at stake? • Who are the key players? Why have they been able to exert so much influence in this issue area? • Who are the likely winners and losers of this issue? • How can theories from political economy and/or European integration help us understand the development of this policy?

You may do your presentation from an EU perspective, that of a particular Member State, actors from civil society, relevant institutions, or some combination (including elements not listed above). After the presentation, the student should be prepared to answer questions and lead a discussion on this topic (so prepare a few discussion questions in advance).

The day before the presentation, send a copy of the slides and the sources used for research to the professor and academic assistant. Please have the sources in a separate document, i.e. not on a slide.

Some additional suggestions:

(1) Have a point. The presentation should not be simply the transmission of information. It should be organized in a way that shows a specific argument/perspective and answers the questions above.

(2) Research and prepare your presentation thoroughly. Use the web and library sources, and make sure you understand the topic well. You will be asked questions after the report. However, a summary/explanation of the mechanics of your topic is not your objective; an analysis of the topic is your goal. A mix of official reports, academic books, book chapters and articles and current information from newspaper/blogs/think tank pieces tend to work best. Do not rely on Wikipedia. Do not sound like you are summarizing the Commission’s website (or any official website). Beware of over-reliance on a single source.

(3) Organize your information carefully. Remember that giving an oral presentation is different from writing a paper. The ideas must flow easily and naturally so that your audience can grasp them aurally.

(4) Prepare an outline. You may prepare your presentation on Powerpoint. Be careful about your slides being too wordy/dense/hard to read.

(5) Write your report. You do not have to write the text of your presentation word for word, but you should prepare detailed and well-organized notes to aid you in making the presentation, though you should not read from those notes during the presentation.

(6) Rehearse your presentation. This will enable you to time your report and will help you feel confident and at ease in presenting it. Keep track of your time, you will be responsible for it during your presentation.

(7) Present confidently. If you have prepared and rehearsed your presentation, you will be able to present with confidence. Avoid interruptions like "um", "well, ah...", etc. Avoid presenting in monotone; present with appropriate emphasis to keep your audience's attention. Speak slowly and clearly enough to be understood. Make eye contact with the audience, avoid looking too much at your notes, the computer screen, or the screen behind you.