EU446      Half Unit
The Political Economy of European Monetary Integration

This information is for the 2013/14 session.

Teacher responsible

Dr Waltraud Schelkle COW 1.06


This course is available on the MPA in European Public and Economic Policy, MPA in International Development, MPA in Public Policy and Management, MPA in Public and Economic Policy, MPA in Public and Social Policy, MSc in International Employment Relations and Human Resource Management, MSc in Management, MSc in Management (CEMS MIM), MSc in Political Economy of Europe, MSc in Political Economy of Europe (LSE and Sciences Po), MSc in Political Science and Political Economy, MSc in Politics and Government in the European Union and MSc in Politics and Government in the European Union (LSE and Sciences Po). This course is available with permission as an outside option to students on other programmes where regulations permit.


A basic understanding of economic concepts is essential which is why the attendance of EU409 in MT is highly recommended.

Course content

The purpose of this course is to analyse the process of European monetary integration and its implications for the institutions of economic governance in the EU. There will be a strong emphasis on using the experience of the financial and economic crises since 2008 as a source of evidence to assess both the performance of EMU and the theories about monetary integration. We consider briefly the political and economic rationale for the establishment of EMU and then examine in detail how these rationales played themselves out in practice (e.g. problems of free-riding, political exchange, information asymmetries between policymakers etc). Indicative questions addressed in this course include: how and why did the EU develop the EMU project?; did economic theories prepare us for the Euro area crisis of 2010-11?; what are the challenges for member states in adjusting to the discipline of the 'Euro-zone'?; what issues arise for the EU in managing relations between member states in the Euro-zone and those outside?; how does the Euro affect the ability of member states to adjust to periods of crisis and to external shocks?; is the sovereign debt crisis of 2010 indicative of imbalances within the EU and basic flaws in its institutional design?


10 hours of lectures and 15 hours of seminars in the LT. 3 hours of seminars in the ST.

Formative coursework

One 1,500-word essay and one group essay of up to 3,000 words.

Indicative reading

Paul De Grauwe (2012) The Economics of Monetary Union (Oxford University Press, 7th ed.); Kenneth Dyson and Kevin Featherstone (1999) The Road to Maastricht, OUP; Special issue (2006): 'Economic Governance in EMU Revisited', Journal of Common Market Studies vol.44, No.4 (November); DG Ecfin (2009) Economic Crisis in Europe: Causes, Consequences and Responses, European Economy 7/2009; Jean Pisani-Ferry and Adam Posen (2009) The Euro at Ten: The Next Global Currency?, Peterson Institute for International Economics.


Exam (100%, duration: 2 hours) in the main exam period.

Student performance results

(2009/10 - 2011/12 combined)

Classification % of students
Distinction 16.7
Merit 63.3
Pass 19.2
Fail 0.8

Key facts

Department: European Institute

Total students 2012/13: 63

Average class size 2012/13: 16

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Self-management
  • Team working
  • Communication
  • Application of numeracy skills

Course survey results

(2010/11 - 2012/13 combined)

1 = "best" score, 5 = "worst" score

The scores below are average responses.

Response rate: 77.6%



Reading list (Q2.1)


Materials (Q2.3)


Course satisfied (Q2.4)


Lectures (Q2.5)


Integration (Q2.6)


Contact (Q2.7)


Feedback (Q2.8)


Recommend (Q2.9)