LFU:online

The goal of this economics course is to understand the theoretical underpinning of European monetary policy and the institutional design of European Economic and Monetary Union (EMU) and to see how they work in practice. We will discuss the performance of and potential challenges for EMU and for the Eurosystem (i.e. EZB and participating national central banks) including the challenges emanating from EMU enlargement. The course also offers an in-depth discussion of European banking supervision and financial market stability issues.

The focus is exclusively on the application of monetary theory in policy in the EMU context. • A little theory: money, inflation and transmission • The institutional design of and decision making in EMU and in particular the ESCB / Eurosystem. Some comparative remarks with respect to the Federal Reserve System. EMU enlargement issues • Monetary Policy and Financial Stability, applied monetary decision making, joining the ERM II and adopting the euro • Banking supervision and financial stability reporting, The course consists of 3 modules: Module 1: Banking Supervision and Financial Stability Module 2: Theory and ECB Strategy Module 3: Institutional Design of EMU, EMU enlargement and comparison with FED RES