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Political Economy in Europe

Our research themes 

Research in Political Economy in Europe concentrates on the interaction between political and economic processes in Europe. We study these interactions in different areas.

In the monetary field there is the interaction between the sovereign debt crisis in the Eurozone, the political responses to the crisis and the institutional reforms that the evolving crisis have imposed on the Eurozone. We study how different social models affect the workings of capitalism and how the different varieties of capitalism in turn influence social models. Another area of research relates to the interaction between the labour market institutions and the economic governance of the EU and the Eurozone.


The Limits of the Market: The Pendulum Between Government and Market

by Paul de Grauwe

limits of the markets

The old discussion of 'Market or State' is obsolete. There will always have to be a mix of market and state. The only relevant question is what that mix should look like. How far do we have to let the market go its own way in order to create as much welfare as possible for everyone? What is the responsibility of the government in creating welfare? These are difficult questions. But they are also interesting questions and Paul De Grauwe analyses them in this book.

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The Political Economy of Monetary Solidarity: Understanding the Euro Experiment

by Waltraud Schelkle

schelkle book cover

Creating the European monetary union between diverse and unequal nation states is arguably one of the biggest social experiments in history. This book offers an explanation of how the euro experiment came about and was sustained despite a severe crisis, and provides a comparison with the monetary-financial history of the US.

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Economics of the Monetary Union

by Paul de Grauwe 

Economics of Monetary Union

The tenth edition of Economics of Monetary Union provides a concise analysis of the theories and policies relating to monetary union. Paul De Grauwe analyses both the costs and benefits associated with exiting the eurozone, as well as presenting a discussion of the banking union, the current issues surrounding the TARGET2 payment system, and the role of the European Central Bank. In Part One, Paul De Grauwe examines the implications of adopting a common currency, assessing each country's benefit from being a member of the eurozone, while also questioning whether other parts of the world would gain from monetary unification. Part Two of the book looks at the problems of running a monetary union by analysing Europe's experience and the issues faced by the European Central Bank.

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Governance and the European Monetary Union

edited by Erik Jones and Francisco Torres 

Governance and the European Monetary Union

The crisis in the euro area is a defining moment in the history of European integration. It has revealed major flaws in the architecture of the European Union; it has challenged European institutions to shape an appropriate response; and it has tested the patience of a European public that is eager to see their economic prospects improve again. This volume brings together some of the world’s top economists and policymakers to explain how this crisis came about and what is to be done. The policy agenda these chapters establish is going to be difficult to implement, not least because of popular misunderstanding and political opposition. This book argues, that it is essential that European policymakers push forward this agenda or they run the risk of seeing Europe’s economies fall back into crisis. This book was previously published as a special issue of the Journal of European Integration.

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Key Research Themes

  • Rethinking EMU and economic governanceEuropean capitalism(s) and European social model(s)
  • Economic migration, labour markets and population dynamics
  • Welfare including pension reform
  • Fiscal austerity and new sources of economic growth
  • Employment relations, labour market performance and institutional reform
  • Regional policy, industrial structure and economic development
  • East-west international division of labour

Selected publications 

Barr, Nicholas, ‘Income Contingent Loans and Higher Education Financing: Theory and Practice’, in Chapman, Bruce, Higgins, Timothy, and Stiglitz, Joseph E. (eds) (2014), Income Contingent Loans: Theory, Practice and Prospects, Basingtoke, Hants: Palgrave Macmillan, pp. 63-75.

Barr, Nicholas, ‘Financing Higher Education: Mobility, Quality, and Access’, in Gérard, Marcel and Uebelmesser, Silke (eds) (2014), The Mobility of Students and the Highly Skilled: Implications for Education Financing and Economic Policy, Cambridge, Mass.: MIT Press, pp. 189-227.

Begg, I. (2014) ‘Fiscal policy transparency’ in Forssbaeck, J. and Oxelheim, L. eds. The Oxford Handbook of Economic and Institutional Transparency, Oxford: OUP

Begg, I. (2015) ‘EU governance of sustainable development: social and environmental policies’ in Barbier, J.-C., Rogowski, R. and Colomb, F. eds. The Sustainability of the European Social Model: EU Governance, Social Protection and Employment Policies in Europe, Cheltenham: Edward Elgar

Begg, Iain., Bongardt, A., Kalypso, Nicolaidis and Torres, Francisco ( 2015) EMU and Sustainable Integration. Journal of European Integration, 37 (7). Pp. 803 – 816. 

Costa-i-Font, Joan and McGuire, Alistair and Varol, Nebibe (2014) Price regulation and relative delays in generic drug adoption Journal of Health Economics. ISSN 0167-6296

Costa-i-Font, Joan and Cowell, Frank (2014) Social identity and redistributive preferences: a survey  Journal of Economic Surveys. ISSN 0950-0804

De Grauwe, Paul, and Ji, Yuemei, The fragility of two monetary regimes: The European Monetary System and the Eurozone, International, International Journal of Finance & Economics Volume 20, Issue 1,  pages 1–15, January 2015

De Grauwe, Paul, and Macchiarelli, Corrado, 'Animal Spirits and Credit Cycles', Journal of Economic Dynamics and Control, 2015

Foresti P. and Napolitano O., (2014). 'Money Demand in the Eurozone: Do Monetary Aggregates Matter?'  Engineering Economics, Vol. 25, No. 5.

Bob Hancké (2013) 
Unions, Central Banks and EMU: Labour market institutions and monetary integration in Europe. Oxford: Oxford University Press.

Jones, Erik and Torres, Francisco (2015) An ‘economics’ window on an interdisciplinary crisis. Journal of European Integration, 37 (7). pp. 713-722. ISSN 0703-6337

Jones, Erik and Torres, Francisco (2015) Using interdisciplinary analysis to shape a policy agenda. Journal of European Integration, 37 (7). pp. 875-880. ISSN 0703-6337

Christopoulou R. and Monastiriotis V. (2015), 'Public-private wage duality during the Greek crisis', Oxford Economic Papers [DOI: 10.1093/oep/gpv054]

Monastiriotis V. and Martelli A. (2014), 'Labour market informality and non-standard employment in Serbia during the global financial crisis', Südosteuropa, vol.62 (4), pp.421-439.

Mabbett, D. and W. Schelkle (2014) ‘What difference does Euro membership make to stabilization? The political economy of international monetary systems revisited’, published online in Review of International Political Economy (May).

Schelkle, Waltraud, and Barta, Zsofia (2015) At cross-purposes: commercial versus technocratic governance of sovereign debt in the EU Journal of European Integration. 1-20. ISSN 0703-6337

Academic Staff working in this area