Study-Unit Description

Study-Unit Description


CODE EST3192

 
TITLE European Union Economic and Monetary Union

 
LEVEL 03 - Years 2, 3, 4 in Modular Undergraduate Course

 
ECTS CREDITS 4

 
DEPARTMENT European Studies

 
DESCRIPTION This unit focuses on the effects of the single currency on economic policy making in the EU. The unit reviews the theoretical framework for economic and monetary integration, including costs and benefits of monetary integration and the theory of optimum currency areas. A review of the transition process leading to Economic and Monetary Union in the EU and the introduction of the Euro is provided. The unit includes a review of the institutional set up in the Euro Area. The unit outlines the implementation of monetary policy in the Euro Area and the role of the European Central Bank as well as the coordination of national fiscal policies and the Stability and Growth Pact. The unit includes an overview of the role of the euro in the international context.

Study-unit Aims:

The unit aims to provide a review of the process leading to Economic and Monetary Union in the EU and the introduction of the Euro. It aims to make students familiar with the manner in which monetary and fiscal policy is conducted in the Euro Area. The unit aims to provide students with the theoretical arguments underpinning a common currency area and to enable them to understand the implications of the single currency for economic and monetary policy making at EU and national level.

Learning Outcomes:

1. Knowledge & Understanding:
By the end of the study-unit the student will be able to:

- identify the main costs and benefits of Economic and Monetary Union in the EU;
- apply the theory of optimum currency areas to the European context;
- describe the transition to Economic and Monetary Union in the EU and the process leading to the introduction of the Euro;
- define the main characteristics of the European Central Bank and identify the main issues of monetary policy in the Euro Area;
- describe the main elements of the Stability and Growth Pact;
- understand the challenges faced by the Euro Area during the sovereign debt crisis of 2010-2011;
- appraise the role of the euro in the international context;
- have an improved understanding of the implications of joining the Euro Area for national economic policy making and for consumers and businesses;
- appreciate the theoretical arguments underpinning proposals for reforms to economic governance in the Euro Area.

2. Skills:
By the end of the study-unit the student will be able to:

- explain the manner in which monetary policy is implemented in the Euro Area and the manner in which national fiscal policies are coordinated;
- appreciate the implications for national economic policy making brought about by joining the Euro Area;
- evaluate the main weaknesses in EMU and assess proposals for reforms to economic governance in the Euro Area.

Main Text/s and any supplementary readings:
(availability at the Library or otherwise is indicated against each entry)

De Grauwe, Paul (2009), 'Economics of Monetary Union', Oxford University Press, 8th Edition (2007 edition available at the Library)
El-Agraa, Ali (2007), 'The European Union Economics and Policies', Cambridge University Press, 8th Edition (available at the Library)
Artis, Mike & Nixson, Frederick (2007), 'The Economics of the European Union', Oxford University Press, 4th Edition (2001 edition available at the Library)

Additional reading material from

- publications by European Commission DG Ecfin
- publications by the European Central Bank
- International Monetary Fund publications

 
ADDITIONAL NOTES Kindly note that students will also be required to deliver a presentation of 10 minutes on their assignment.

 
STUDY-UNIT TYPE Lecture

 
METHOD OF ASSESSMENT
Assessment Component/s Assessment Due Resit Availability Weighting
Assignment SEM2 Yes 40%
Examination (2 Hours) SEM2 Yes 60%

 
LECTURER/S Moira Catania

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the study-unit description above applies to the academic year 2019/0, if study-unit is available during this academic year, and may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit