European Economic Integration

European Economic Integration

The objective of this course is to provide students with an understanding of the European economic integration, its evolution, as well as the insight into several key components/perspectives of European economic integration. This course begins with an overview of the main socio-economic indicators of the E U and moves on the costs and benefits of the integration. After the introduction of basic tools of economic modelling, such as supply- and demand curves, consumer and producer surplus, the course will turn to fundamentals of international trade theory, such as absolute and comparative advantage and gains from trade, restrictions to free trade, such as tariffs, quotas and subsidies. European Union issues with regard to the market for goods and services, the labour market and the financial market will be discussed – all with examples from the EU. Subsequently the benefits and costs of the Economic and Monetary Union (euro zone) are discussed, as well as the theory of optimum currency area, the Krugman model, the Mundell Model, the Barro-Gordon model and the Balassa-Samuelson effect.