THE GRADUATE CENTER OF CUNY

ISSUES IN EUROPEAN POLITICAL ECONOMY

H.M. Kaufmann
Office:            365 Fifth Ave., 5208.04
Office hours:   Th. 15:00-16:00 and by appointment
Tel.:                212-817-2052
Fax:                212-817-1577

Spring 2007

The semester will deal with the analytical foundation and the salient issues concerning the European Union (EU). We will examine pertinent theories and the real world of politics and economics which are tightly interlinked in the case of the EU.

With the latest enlargement of the EU (May 1, 2004), European integration has entered a new phase in what has been a remarkable achievement in voluntary reduction of national sovereignties. The center of decision-making in many policy areas (such as monetary, labor, fiscal policy and trade policy, for instance), has partially moved from the national to the transnational (international). Participants in the seminar will gain a thorough understanding of current developments unfolding in Europe and of the impact of European policies and developments on neighboring countries and beyond.

Course Requirements:
There will be a final research paper that will be worth 75% of the grade. Other requirements include: presentation of students’ research topics to the class (after consultation with the professor), participation in class discussions and introduction of the reading to the class by each student at least once a semester. Seminar participants will be required to turn in a detailed outline of their topics and bibliography by the end of October. The final research paper is due the last day of class.
 

Required Texts

Baldwin, Richard and Charles Wyplosz: The Economics of European Integration NY: MHP, 2006.
De Grauwe, Paul. Economics of Monetary Union. Oxford University Press. Sixth Edition, 2005
Molle, Willem. The Economics of European Integration: Theory, Practice, Policy. Ashgate, 2006.
Wallace, Helen and William, eds. Policy-Making in the European Union. NY: Oxford UP, 2005. Fifth Edition.
Financial Times. Special student subscription available in class.
https://www.ftnewspaper.com/cgi-bin/ftusa.cgi/fess/vanity_us_student

Table of Contents

I. MOTIVES FOR EUROPEAN INTEGRATION

II. COMMON AGRICULTURAL POLICY (CAP)

III. COMPETITION POLICY - THE SINGLE EUROPEAN MARKET - PROJECT 1992

IV. THE EUROPEAN ECONOMIC AND MONETARY UNION

V. (UN)EMPLOYMENT AND MIGRATION: MOBILITY WITHIN AND BETWEEN AND BETWEEN EU COUNTRIES

VI. THE POLITICS AND ECONOMIC OF ENLARGEMENT AND THE STABILITY AND GROWTH PACT

VII. REGIONAL POLICY: REDUCTION OF REGIONAL DIFFERENCES - EUROPE AN OPTIMUM CURRENCY AREA?

VIII. THE EU AS INTERNATIONAL ACTOR

I. MOTIVES FOR EUROPEAN INTEGRATION - POLITICAL, ECONOMIC AND HISTORIC ELEMENTS

Alesina, Alberto. “Europe.” National Bureau of Economic Research, NBER Reporter, Summer 2006, pp. 8-10.
          www.nber.org/reporter
Alesina, Alberto and Roberto Perotti. AThe European Union: A Politically Incorrect View.@ Journal of Economic Perspectives, 18(4;
          Fall 2004):27-48. NBER Working Paper No. 10342, March 2004. NBER Working Paper No. 10342.March 2004.
Baldwin and Wyplosz, Chs.1, 4-7
Wallace, “Institutions, Process, and Analytical Approaches” In Wallace, Part I.

Highly recommended:
Boldrin, Michele and Fabio Canova. "Inequality and Convergence in Europe's Regions: Reconsidering European Regional Policies."
          Economic Policy, 32 (April 2001):205-53.
Cini, Michelle. European Union Politics. Oxford: OUP, 2003, reprinted 2004.
Mulligan, Casey B., Ricard Gil and Xavier Sala-i-Martin. “Do Democracies Have Different Public Policies than Nondemocracies?”
          Journal of Economic Perspectives 18(1, Winter 2004):51-74.
Mundell, Robert A. "A Reconsideration of the Twentieth Century." AER 90(3 June 2000):327-40.
Persson, Torsten and Guido Tabellini. AConstitutions and Economic Policy.@ Journal of Economic Perspectives 18(1; Winter 2004):75-
          98.
Wiener, Antje and Thomas Diez. European Integration Theory.  Oxford: OUP, 2004.

II. COMMON AGRICULTURAL POLICY (CAP)

Baldwin and Wyplosz, Ch. 8
Molle, Ch. 9
Peterson and Bomberg, “The Common Agricultural Policy,” 120-141
Rieger, Elmar. "The Common Agricultural Policy." In Wallace, Ch. 6.

Ackrill, Robert W. " Reform 1999: A Crisis in the Making." JCMS 38(2:June 2000):343-53.
Daugbjerg, Carsten and Alan Swinbank, “The CAP and EU Enlargement.” JCMS 42(1;March 2004):99-119.

III. COMPETITION POLICY - THE SINGLE EUROPEAN MARKET - PROJECT 1992

Baldwin and Wyplosz, Ch. 9
McGowan, Francis. "Competition Policy." In Wallace and Wallace, Ch. 5.
Woolcock, Stephen. "European Trade Policy." Wallace, Ch. 14.
Young, Alasdair R. "The Single Market." In Wallace and Wallace, Ch. 4.

Hölscher, Jens and Johannes Stephan. “Competition Policy in Central and Eastern Europe in the Light of
          EU Accession.” JCMS 42(2; June 2004):321-45.
Marginson, Paul and Keith Sisson. “European Integration and Industrial Relations.” JCMS 40 (4, November 2002):671-92.
Nicoletti, Giuseppe and Stefano Scarpetta. “Regulation, Productivity and Growth: OECD Evidence.”
          Economic Policy 36(April 2003):9-72.
Young, Alistair R. “The Single European Market and World Trade.” JCMS 42(2; June 2004):393-414.

IV. THE EUROPEAN ECONOMIC AND MONETARY UNION

Baldwin and Wyplosz, 10-16
De Grauwe, Paul. Economics of Monetary Union.
Molle, Ch.
Tsoukalis, Loukas. "Economic and Monetary Union." In Wallace, Ch. 6.
 

Alesina, Alberto and Vittorio Grilli, "On the Feasibility of a One-Speed or Multispeed European Monetary Union." In Eichengreen,
          Barry and Jeffry Frieden, eds. The Political Economy of European Monetary Unification, Ch. 6.
Amato, Jeffrey et al. AResearch on Exchange Rates and Monetary Policy: An Overview.@ BIS Working Papers, No 178. June 2005
Cohen, Benjamin J. “Can the Euro Ever Challenge the Dollar?” JCMS 41(4; September 2003):575-95.
De Grauwe, Paul. “Challenges for Monetary Policy in Euroland.” JCMS 40, (4, November 2002):693-718.
Dornbusch, Rudi. "Fewer Monies, Better Monies." American Economic Review 91(2; May 2001), Papers and Proceedings, pp.238-
          47.
Eichengreen, Barry and David Leblang. “Exchange Rates and Cohesion.” JCMS 41 (5, December 2003):797-822.
Issing, Otmar. “On Macroeconomic Policy Co-ordination in EMU.” JCMS 40, (2, June, 2002):345-58.
Kaufmann, Hugo M. "From EMS to European Economic and Monetary Union…," in Kurz, Ed., German Unification and European
          Integration.
McCallum, Bennett T. “Theoretical Issues Pertaining to Monetary Unions.” NBER Working Paper No. w7393 (October 1999).
Mongelli, Francesco Paolo. “New” Views on the Optimum Currency Areas Theory: What Is EMU Telling Us? ECB, Working Paper
          Series, Working Paper No. 138, April 2002. [Excellent overview of historical/analytical development of OCA theory.]
Mundell, Robert. ‘A Theory of Optimum Currency Areas.” AER 51 (4, September 1961): 657-65 [locus classicus]
Youngs, Richard. "The Politics of the Single Currency: Learning the Lessons of Maastricht." JCMS 37(2:June 1999)295-316.

V. (UN)EMPLOYMENT AND MIGRATION: MOBILITY WITHIN AND BETWEEN AND BETWEEN EU COUNTRIES

Baldwin and Wyplosz, Ch. 17
Leibfried, Stephan and Paul Pierson, “Social Policy” in Wallace and Wallace, Ch. 10
Molle, Chapter 7

Balakrishnan, Ravi and Claudio Michelacci, "Unemployment dynamics across OECD countries," European Economic Review, 45(1;
          2001):135-65.
Bhagwati, Jagdish, Arvind Panagariya and T.N. Srinivasan. “The Muddles over Outsourcing.” Journal of Economic Perspectives,
          18(4; Fall 2004):93-114.January 6, 2005.
Blanchard, Olivier. “Explaining European Unemployment.” NBER Reporter: Research Summary 2004.
Blanchard, Olivier and Lawrence F. Katz. "What Do We Know About the Natural Rate of Unemployment?" Journal of Economic
          Perspectives 11 (1, Winter 1997):51-72.
Commission of the European Communities "Integrated Guidelines for Growth and Jobs (2005-2008)" Communication to the Spring
          European Council "Integrated Guidelines for Growth and Jobs (2005-08).
Communication from the Commission to the Council and the European Parliament "Common Actions for Growth and Employment:
          The Community Lisbon Program"
Commission Staff Working Paper "Working together for growth and jobs - Next in implementing the revised Lisbon strategy."
Guiraudon, Virginie. "European Integration and Migration Policy." JCMS 38(2:June 2000):251-71.
Ireland, Patrick. Becoming Europe: Immigration, Integration, and the Welfare State. Pittsburgh, PA: University of Pittsburgh Press,
          2004.
Kraus, Margit and Robert Schwager. “EU Enlargement and Immigration.“ JCMS 42(1; March 2004):165-81.
Saint-Paul, Gilles. “Why are European Countries Diverging in their Unemployment Experience?” Journal of Economic Perspectives,
          18(4; Fall 2004):49-68.
Schimmelpfennig, Axel. "Structural Change of the Production Process and Unemployment in Germany." Kieler Studien 307. Tübingen
          2000.
Sinn, Hans-Werner and Wolfgang Ochel. “Social Union, Convergence and Migration.” JCMS 41 (5, December 2003):869-96.
 

VI. THE POLITICS AND ECONOMICS OF ENLARGEMENT AND THE STABILITY AND GROWTH PACT

Baldwin and Wyplosz, passim B see Index under Aenlargement@
Sedelmeier, Ulrich and Helen Wallace. “Eastern Enlargement.” In Wallace and Wallace, Ch.16.

Buti, Marco, AWill the New Stability and Growth Pact Succeed? An Economic and Political Perspective. European Commission,
          European Economy, Economic Papers No. 241, January 2006. http://europa.eu.int/comm/economy_finance/index_en.htm
European Central Bank, International Relations Committee Task Force on Enlargement, AMacroeconomic and Financial Stability:
          Challenges for acceding and Candidate Countries.@ Occasional Paper Series, No. 48, July 2006. http://www.ecb.int
Grabbe, “European Union Conditionality and the Acquis Communeautaire,” IPSR, 2002, Vol.23, No.3, 249-268.
Guillén and Palier, “Introduction: Does Europe matter? Accession to EU and social policy developments in recent and new member
          states,” Journal of European Social Policy, 2004, Vol.14, No.3, 203-209.
Heidenreich, “Regional inequalities in the enlarged Europe,” Journal of European Social Policy, 2003, Vol.13, No.4,
Nello, “Preparing for Enlargement in the European Union: The Tensions between Economic and Political Integration,” IPSR, Vol.23,
          No.3, 297-317
Uvalic, “Regional Cooperation and the Enlargement of the European Union” Lessons Learned? IPSR, 2002, Vol.23, No.3, 319-333.

Highly recommended:
Artis, Michael J. and Marco Buti. "'Close-to-Balance or in Surplus': A Policy-Maker's Guide to the Implementation of the Stability and
          Growth Pact." JCMS 38(4, November 2000):563-92.
Avery, Graham and Fraser Cameron. The Enlargement of the European Union. Sheffield:Sheffield Academic Press, 1998.
Buti, Marco and Gabrielle Guidice. “Maastricht’s Fiscal Rules at Ten: An Assessment.” JCMS 40 (5, December 2002):823-48
Barry, Frank. “Integration and Convergence in the Cohesion Countries.” JCMS 41 (5, December 2003): 897-922
Caplanova, Anetta, Marta Orviska and John Hudson. Eastern European Attitudes to Integration.” JCMS 42(2; June 2004): 271-87.
Devereux, Michael B. “EU Accession and Alternative Monetary Policies.” JCMS 41 (5, December 2003):941-62
Forni, Mario and Lucrezia Reichlin, "Federal policies and local economies: Europe and the US.” European Economic Review, 45(1;
          2001):109-34.
Megginson, William L. and Jeffrey M. Netter. "From State to Market: A Survey of Empirical Studies on Privatization." Journal of
          Economic Literature 39(2, June 2001):321-89.
Miles, Lee. The European Union and the Nordic Countries: Impacts on the Integration Process." In
          The State of the European Union Vol. 3, Ch. 14.
Smaghi-Lorenzo-Bini; Claudio Casini. "Monetary and Fiscal Policy Co-operation: Institutions and Procedures in EMU." JCMS, 38(3;
          September 2000):375-91.

VII. REGIONAL POLICY: REDUCTION OF REGIONAL DIFFERENCES - EUROPE AN OPTIMUM CURRENCY AREA?

Baldwin and Wyplosz, Chapter 9

Wallace and Wallace, Cohesion Policy.

Bourne, Angela K. “The Impact of European Integration on Regional Power.” JCMS 41(4; September 2003):597-620.
Cappelen, Aadne et al. “The Impact of EU Regional Support on Growth and Convergence in the European Union.” JCMS 41(4;
          September 2003):621-44.
Deutsche Bundesbank, “Effects of Eastward Enlargement of the EU on the German Economy.” Monthly Report (May 2004):5-22.
Marek, Dan and Michael Baun. “The EU as a Regional Actor: The case of the Czech Republic.” JCMS 40(5; December 2002):895-
          919.

VIII. THE EU AS INTERNATIONAL ACTOR

Bomberg and Stubb, Ch. 10
Forster and Wallace, Ch. 17, in Wallace and Wallace.

Carlsnaes, Walter, Helene Sjursen, and Brian White (eds.). Contemporary European Foreign Policy. Sage, 2004.
Ash, Timothy Garton. Free World. NY: Random House, 2004.
Cimbalo, Jeffrey L. “Saving NATO from Europe.” Foreign Affairs (November/December):111-20.
Blanchard, Olivier. “The Economic Future of Europe.” Journal of Economic Perspectives, 18(4; Fall 2004):3-26.
Ginsberg, Roy H.. The European Union in International Relations. Rowman & Littlefield, 2001.
Habermas, Juergen and Jacques Derrida, “February 15, or What Binds Europe Together: A Plea for a Common Foreign Policy,
          Beginning in the Core of Europe.” Constellation, Vol. 10.No.3, 2003.
Holland, Martin. The European Union and the Third World.  New York: Palgrave, 2002.
Gärtner, Heinz, Adrian Hyde-Price and Erich Reiter, Europe=s New Security Challenges. Boulder, CO: Lynne Rienner, 2002.
Howorth, Jolyon. “European Defence and the Changing Politics of the EU: Hanging Together or Hanging Separately?” JCMS 39(4;
          November 2001):765-89.
Kagan, Robert. Of Paradise and Power. America and Europe in the New World Order. Alfred A. Knopf, 2003.
Kenen, Peter, “Transatlantic Relations and the Global Economy”North American Journal of Economics and Finance, 15(2004):149-59.
Nicolaidis, Kalypso. “We, the Peoples of Europe...” Foreign Affairs, (November/December 2004):97-110.
Piening, Christopher, Global Europe. The European Union in World Affairs. Boulder: CO: Lynne Rienner, 1997.
Reid, T.R. The United States of Europe; The new Superpower and the End of American Supremacy. N.Y.: The Penguin Press, 2004.
Smaghi, Lorenzo Bini. “A Single EU Seat in the IMF?” JCMS 42(2;June 2004):229-48.
Smith, Karen E. The Making of EU Foreign Policy. The Case of Eastern Europe. Second Edition. New York: Palgrave: 2004.

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