Lecture on European Economics

Winter semester 2019-20

Course Content

I. Main elements of the EU Single Market

  • Main steps in European integration, institutions, legislative procedure.
  • Static welfare effects of free trade and customs union; Cross-border value chains. 
  • Static welfare effects of labour mobility.
  • Migration in the European union – qualification, job allocation and job match.
  • Capital mobility, technological progress, growth and convergence. 
  • EU competition policy – rationale and instruments.
  • Potential output and output gaps – concept, production function approach, structural unemployment rate, growth Accounting.

II. Monetary union and financial markets

  • Pros and cons of a common currency.
  • The 2008 financial crisis - characteristics, forces and costs.
  • EU Banking Union – rationale, institutions, key issues.
  • The European Monetary System (EMS) – basic features.
  • The Euro System – entry conditions and structure.
  • Monetary policy in the euro area - main transmission channels, instruments and policies.

III. Fiscal Policy and governance

  • Government balances and debt - key definitions, debt dynamics and cyclical adjustment.
  • Fiscal policy - consolidation challenge and policy impact.
  • Fiscal governance - rationale, surveillance and its limitations, no-bail-out clause and credibility.

IV. Macroeconomic Imbalances Procedure, structural reform surveillance, Europe 2020 targets

The course material can be found on ILIAS (for registered students).

Lecture & Tutorial Dates

Lecture dates and rooms as written below:

First Block, November 2019:DateTimeRoom
Tuesday 05.11.201915:15-18:30E402
Second Block, January 2020:
Thursday 09.01.2020 15:15-16:45P1138


Registration to the exam requires preparation of written answers on two papers.