European studies

Course objective: The primary goal of this course is to provide students with a basic understanding of the concepts and analysis of economic integration. The course will cover the main theoretical issues related to economic integration (customs union, common market etc.) As a most successful scheme of international economic integration special emphasis is given to the European Union. Although the course will concentrate on main economic aspects of the European integration, a brief overview of historical and political foundations of the European Union will be presented. The course is divided in two parts. The first part considers the basic economics of trade protection, the stages of economic integration – from Customs Union to Common Market to Economic and Monetary Union. Special focus will be addressed to the formation of customs unions and the costs/benefits of joining trading blocs such as the EU. We also study the Single Market program - the four freedoms (goods, services, capital and labour), nontariff barriers, factor mobility; the location of industry and the “new economic geography”; the effects of regional integration on FDI. In the second part some basic principles behind macroeconomic and monetary integration will be studied. In particular, it considers the history of monetary union and the European monetary system. This part will analyze both key theoretical and practical questions of monetary integration. What are the costs of a loss of monetary independence? What is the likely impact of asymmetric shocks? How quickly does the economy adjust? What criteria need to be in place for a single currency area to be successful? The final session will consider the impact of the financial crisis on the eurozone. Structure of the Course Part one – Economic Integration, trade and the single market 1. History, law, institutions and the budget of European Union 2. Essential microeconomic tools and tariff analysis 3. The essential economics of preferential liberalization 4. Growth effects and factor market integration 5. Location effects, economic geography and regional policy Part Two – Monetary Union and economic crisis 1. Essential tools of macroeconomics 2. Optimal currency area 4. The monetary union: principles and practice 5. Fiscal policy and the stability pact 6. The three crises of the eurozone

Required basic knowledge of microeconomics and macroeconomics No propaedeuticity is required

Main Textbooks: - Reganati, Nardone, Economics of European Integration, cod. ISBN 9781307869750, McGraw-Hill Create

Lectures and tutoring classes

Course attendance is strongly recommended

Attending students There will be two midterm tests (70%) and one final oral exam (30%). Each test consists of 25 multiple-choice questions and must be completed in 30 minutes. The 1 point-questions have one correct answer only, while the 2 and 4 point-questions may have more than one correct answer. For questions that may have multiple correct answers, you must indicate all the correct answers. It is required an attendance record equal to 80 percent You can miss at max 4 lectures and 3 seminars/revision classes NON attending students There will be a written test (70%) and an oral exam (30%). The test consists of 4 multiple-choice questions and must be completed in 30 minutes. The 1 point-questions have one correct answer only, while the 2 and 4 point-questions may have more than one correct answer. For questions that may have multiple correct answers, you must indicate all the correct answers. A grade of not less than 18/30 is required to pass the examination. The student must demonstrate sufficient knowledge of micro- and macroeconomic theories and be able to describe them analytically, including through the use of graphs. In order to obtain a mark of 30/30 cum laude, the student must instead demonstrate that he/she has acquired an excellent knowledge of all the topics covered in the course, being able to illustrate all their features and implications in detail.

- Olivier Blanchard, Alessia Amighini, Francesco Giavazzi, Macroeconomics: A European Perspective, ©2017 |Pearson. - T. Hitiris, European Union Economics, 5th edition, 2003, Pearson Education - M.J. Artis and N. Nixson, The Economics of the European Union, 4th edition, 2007 Oxford University Press, - W. Molle, The Economics of European Integration, 5th edition, 2006, Ashgate - Jovanovic, Miroslav N. (2013) The Economics of European Integration, Second Edition, Edward Elgar. - Pelkmans, Jacques (2006) European Integration: Methods and Economic Analysis, Third Edition, FT Prentice Hall. Useful links: http://www.europa.eu.int http://www.ecb.int

Lectures and tutoring classes