This course will study the macroeconomics of European monetary union, and the build-up to the crisis that engulfed the currency area between 2008 and 2013. We will examine the austerity programmes and fiscal discipline that have been put place to contain sovereign and banking sector risks, including in the context of the some of the key crisis programmes implemented by the ‘troika' of IMF, EU Commission and ECB.
A key focus of the course will be on how early and well-designed financial restructuring could prevent similar crises from recurring - and specifically look at sovereign debt restructuring, bank resolution, and private debt and its impact on bank asset quality. The course will study in depth the growing financial integration between euro area countries, for which Brexit will now define an entirely new context. The crisis in the euro area may have abated, though its foundations are by no means secure. We will conclude with an examination of some of the key blueprints for reform that are now re-emerging on the political agenda.