The Process of European Economic Integration (since 1945)
Universidad Carlos III de Madrid
Area of Study
Business, Economics, International Business, International Economics
Taught In English
STUDENTS ARE EXPECTED TO HAVE COMPLETED
Macroeconomics (intermediate level)
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3
Recommended U.S. Quarter Units4
Hours & Credits
COMPETENCES AND SKILLS THAT WILL BE ACQUIRED AND LEARNING RESULTS.
-to analyze the dynamics of growth and convergence of European economies in the long run (1870-2005), and its determinants, within the framework of different theories of economic growth;
-to analyze the relationship between growth and economic itnegration in the long run, within the framework of different models of trade and itnernational specialization;
-to assess the impact of the creation and development of the European Economic Community (EEC) and the European Union (EU) on growth and integration in Europe in the second half of the 20th century;
-to assess the contribution of EEC-EU to monetary integration and macroeconomic stability in Western Europe;
-to analyze the characteristics of the process of European integration in the perspective of new institutional economics and its achievements in terms of institution building (new rules affecting the behavior of governments, firms and markets).
-to develop basic skills realted to processing and analysis of quantitatie data, in relation with quantitative methods such as growth accounting and indicators of specialization and integration;
-to develop basic skills related to text analysis, collection and processing of information, precision in the use of analytical concepts, clarity in the establishment of causal connections;
-to develop advanced skills related to comparison of texts, estimation and use of quantitative indicators, writing a text according to academic and scientific criteria;
-to develop skills related to the oral presentation to a public audience of the results of his/her work.
-an open attitude towards different approaches to, and dimensions of economic integration
-a flexible attitude to raise and accept constructive criticism
-an open attitude towards discussing solutions to current problems of the European Union
-curiosity towards complex issues.
DESCRIPTION OF CONTENTS: PROGRAMME
1) The process of institutional integration
- Defining integration: negative vs positive
- Theory of Regional Economic Associations; enlargements and domino effects
- Methods of institutional integration: cooperation, federalism, neo-functionalism
- Stages and turning points: from the EEC to the UE
- Constitutional treaties and principles: Rome 1957 and Maastricht 1992
- Creeping competences and the subsidiarity principle: does the EU do what it should?
- Historical evolution of common policies and the budget: how the EU spends its resources
- Historical evolution of decision rules: measuring power and forming coalitions; is EU decision making efficient?
2) The process of economic integration
- Liberalization, customs union and single market
- Making the single market: the removal of frictional barriers
- Factor market integration: labor and capital
- Single market and scale economies: the defragmentation of the European market in the 1980s-90s
- Growth effects of European economic integration: theory and facts
- Consequence of integration for European specialization and economic geography
3) The process of monetary integration
- Exchange rate regimes and economic policy: the ¿trilemma¿ or ¿impossible triad¿
- Costs and benefits of a single currency: the theory of Optimum Currency Areas
- Creating a European area of macroeconomic and exchange rate stability: from the ¿Snake¿ (1973-79) to the European Monetary System (1979-1998)
- Rules and interpretations of the EMS: the German ¿anchor¿; cooperation vs discipline
- Currency crises: first, second and third generation models
- The EMS crisis 1992-93
- The Stability Pact and the transition to the single currency
- Is Europe an optimum currency area?
- Eurozone's architecture and the European crisis 2008-15
LEARNING ACTIVITIES AND METHODOLOGY
Students will develop their knowledge and attitude skills by:
-attending lectures, in which analytical concepts and historical developments of the topics of the syllabus will be explained
-attending training sessions in IT rooms, in which they will learn techniques of data processing and analisis
-undertaking weekly or fortnightly assignments, based on readings and data sets;
-writing an essay.
The course will be articulated as follows.
Students will receive four sets of teaching material, including:
a) materials for lectures, training sessions and exercises (power point slides of lectures, mandatory readings, data bases)
b) training sessions will require the estimation of the sources of growth (growth accounting) and indicators of specialization and integration. Students will work in couples in order to enhance the ability to work in team. Basic knowledge of Excel is required.
c) exercises will include multiple choice and short questions to control the level of assimilation of mandatory readings, or the solution of simple quantitative exercises. Students are allowed to work in group, exercises will be handed in in written format to the professor and will be discussed in class.
d) a list of topics with related bibliographical references for the final essay. Essays will be individual in order to foster the ability to work alone. A short document about "How To Write An Essay" will be included, in order to allow students to assimilate the basic criteria required for academic works. Students will also have the opportunity to present to the rest of the class the main results of their essay.
At the start of the course students will receive a timetable with full details of lectures, training sessions, exercises, essay writing and presentation.
The course is worht 6 ECTS, which include 3 ECTS for class attendance, 2 ECTS for group work in training sessions and exercises, and 1 ECTS of individual work for essay writing and presentation.
Final grade will be assigned as follows:
-final exam (possibly split into three partial exams): 60%
-assignments and exercises: 20%
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De Grauwe P.. The Economics of Monetary Union. Oxford University Press. 2012
Dyson K., Featherstone K.. The Road to Maastricht. Oxford University Press. 1999
Eichengreen B.. Globalizing Capital. A History of the International Monetary System. Princeton University Press. 1996
Eichengreen B.. The European Economy Since 1945: Coordinated Capitalism and Beyond. Princeton University Press, 2008.
Eichengreen B.. European Monetary Unification. The MIT Press. 1998
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Baldwin R.. Study on the impact of the euro on trade and foreign investment. European Commission. Directorate General for Economic and Financial Affairs, 2008.
Baldwin R.. "The Euro's trade effect". European Central Bank Working Papers, 2006, n. 594.
Berger H., Nitsch V.. Zooming out: the trade effect of the Euro in historical perspective. Journal of International Money and Finance, 27, pp. 1244-1260. 2008
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Ederveen S., Gelauff G., Pelkmans J.. Assessing subsidiarity. CPB Document, n. 133. November 2006
Eichengreen B.. European monetary unification. Journal of Economic Literature, 31, 1993, pp. 1321-1357.
Giavazzi F., Giovannini A.. Limiting Exchange Rate Flexibility: The European Monetary System. Cambridge Mass, MIT Press, 1989.
Gros D., Thygesen. European Monetary Integration: From the EMS to the EMU. London, Longman, 1992.
Jacquemin A., Sapir A.. European Integration or World Integration?. Weltwirtschaftliches Archiv, v. 124, n. 1, 1988.
Kahanec M., Zimmermann K.F.. Migration in an enlarged EU: a challenging solution?. European Economy - Economic Papers n. 363 (DGEFA European Commission). March 2009
Midelfart Knzrvick K., Overman H., Redding S., Venables A.. The Location of European Industry. Economic Papers, n. 142 (report prepared for the DGEFA of the European Commission). April 2000
Pelkmans J.. Testing for subsidiarity. BEEP (Bruges European Economic Policy) Briefing n. 13 (College of Europe). February 2006
Sapir A.. Regional integration in Europe. The Economic Journal, 102, 1992, pp. 1491-1506.
Sapir A.. "Domino Effects in Western European Regional Trade, 1960-1992". European Journal of Political Economy, 17, 2001, pp.377-388.
Please note that there are no beginning level Spanish courses offered in this program.
Courses and course hours of instruction are subject to change.
Eligibility for courses may be subject to a placement exam and/or pre-requisites.
Credits earned vary according to the policies of the students' home institutions. According to ISA policy and possible visa requirements, students must maintain full-time enrollment status, as determined by their home institutions, for the duration of the program.
ECTS (European Credit Transfer and Accumulation System) credits are converted to semester credits/quarter units differently among U.S. universities. Students should confirm the conversion scale used at their home university when determining credit transfer.
Please reference fall and spring course lists as not all courses are taught during both semesters.
Availability of courses is based on enrollment numbers. All students should seek pre-approval for alternate courses in the event of last minute class cancellations
Please note that some courses with locals have recommended prerequisite courses. It is the student's responsibility to consult any recommended prerequisites prior to enrolling in their course.