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Lesson 1: The Economics of Integration .


  1. The stages of integration: Free Trade Areas, Customs Unions, The Single Market, Common Market, Economic and Monetary Union;
  2. The theory of Customs Unions: static effects.
  3. The theory of Customs Unions: dynamic effects.



Baldwin and Wyplosz (2020): chap. 1, 2 and 5

Camarero and Tamarit (2019): chap. 1 and 4 

Lesson 2: The EU external (trade) relations.


  1. The Common Commercial Policy (CCP).
  2. The Pyramid of privileges.
    1. Central and Eastern European countries.
    2. The ACP-EU partnership.
    3. Mediterranean countries.
    4. Other developing countries.
    5. Developed countries.
  3. Conclusions.



Baldwin and Wyplosz (2020): chap. 12

Camarero and Tamarit (2019): chap. 6


Lesson 3: The theory of the Common Markets and the Single Market


  1. The theory of the Common Markets
  2. How does factor mobility within the EU affect economic activity and growth; wage convergence and migration.
  3. Euroesclerosis and the Single Market Program
  4. Costs of non-tariff barriers.
  5. Benefits of the Single Market.
  6. Evaluation of the effects of the Single Market.



Baldwin and Wyplosz (2020): chap. 7 and 8

Camarero and Tamarit (2019): chap. 5


Lesson 4: Agriculture and the CAP.


  1. Problems of the agricultural sector.
  2. The Common Agricultural Policy (CAP).
  3. Effects of the CAP.
  4. Reforms of the CAP.



Baldwin and Wyplosz (2020): chap. 9

Camarero and Tamarit (2019): chap. 13


Lesson 5: Regional Policy.


  1. Regional problems and economic integration.
  2. Regional problems in the EU.
  3. Regional economic policy of the EU.
  4. EMU and regional divergence.



Baldwin and Wyplosz (2020): chap. 10

Camarero and Tamarit (2019): chap. 14


Lesson 6: The Background to European Monetary Integration.

  1. A brief history of the post-war international monetary system.
  2. The need for exchange rate stability between European countries.
  3. The operation of the ‘Snake’.
  4. The operation of the European Monetary System: monetary co-operation, the ERM, and the ECU.
  5. The ‘ERM crisis’ of 1992/3, its causes and consequences.
  6. Identification and comparison of the costs and benefits of monetary union.
  7. Optimum currency areas (OCA) and monetary union.



Baldwin and Wyplosz (2020): chap. 13, 14 and 15

Camarero and Tamarit (2019): chap. 7


Lesson 7: Macroeconomic Policies under EMU. The crisis of the eurozone.

  1. The framework for macroeconomic policies.
  2. The Eurosystem and the design of the European Central Bank.
  3. The monetary policy strategy.
  4. Fiscal policy and monetary integration.
  5. The crisis of the eurozone



Baldwin and Wyplosz (2020): chap. 16, 17, 18 and 19

Camarero and Tamarit (2019): chap. 8 and 9.