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2026/2027  BA-BHAAV3007U  The Economics of the Euro

English Title
The Economics of the Euro

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 70
Study board
Study Board for General Management
Programme Bachelor of Science in Economics and Business Administration
Course coordinator
  • Svend Erik Hougaard Jensen - Department of Economics (ECON)
Main academic disciplines
  • International political economy
  • Economics
Teaching methods
  • Face-to-face teaching
Last updated on 30-01-2026

Relevant links
Learning objectives
  • Understand the historical background to European economic and monetary integration.
  • Identify the pros and cons of forming a common currency
  • Discuss the need for fiscal rules to constrain governments in the conduct of fiscal policy
  • Understand the role of financial markets to provide reliable information to fiscal authorities
  • Understand the background to the sovereign debt crisis in Europe
  • Understand the design of and the room for manoeuvre to the European Central Bank
  • Explain recent developments in the euro area such as the launch of banking union
  • Relate the challenges of the euro area to other parts of the developed world, primarily the US and Japan
Course prerequisites
Basic knowledge of microeconomics, macroeconomics and international economics.
Examination
The Economics of the Euro:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Aids Closed book: no aids
However, at all written sit-in exams the student has access to the basic IT application package (Microsoft Office365 (minus Excel), document camera and paper, 7-zip file manager, Adobe Reader DC, PDF24, Texlive, VLC player, Windows Media Player – ATTENTION no sound allowed), and the student is allowed to bring simple writing and drawing utensils (non-digital). PLEASE NOTE: Students are not allowed to communicate with others during the exam.
Make-up exam/re-exam
Same examination form as the ordinary exam
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Course content, structure and pedagogical approach

This course offers a detailed account of the process towards economic and monetary union in Europe. After a short introduction into the history and an overview of the major institutions of the European Union, we will discuss the theoretical foundations of an economic and monetary union. Then we study the key monetary and fiscal policy arrangements in the euro area, including the European Central Bank and the Stability and Growth Pact. In the final part, we will evaluate the performance of the euro area in light of accumulated evidence over the past decade, and we will look ahead in order to provide an assessment of the risks and opportunities of the euro area. 
Research-based teaching
CBS’ programmes and teaching are research-based. The following types of research-based knowledge and research-like activities are included in this course:
Research-based knowledge
  • Classic and basic theory
  • Teacher’s own research
  • Models
Research-like activities
  • Analysis
  • Discussion, critical reflection, modelling
Description of the teaching methods
Lectures
Feedback during the teaching period
Office hours
Student workload
Preparation / exam 170 hours
Classes 36 hours
Expected literature

A: Compulsory:

 

  1. Baldwin, R. and C. Wyplosz (2022), The Economics of European Integration, 7th Edition, McGraw-Hill Education. BW. Chapters 1-3, 7-8, 13-18
  2. De Grauwe, P. (2022), Economics of Monetary Union, 14th Edition, Oxford University Press. DG. All chapters.
  3. Harr, T., and C. Henderson (2024), The Great Inflation Resurgence: Why Inflation Returned in the 2020s and What to Expect Next, 1st Edition, Palgrave Macmillan Cham. HH. Chapters 1, 3 and 4.
  4. Lecture notes

 

B: Cursory/Inspirational

  1. Blanchard, O., Amighini, A., & Giavazzi, F. (2025), Macroeconomics, 9e, Global Edition. Pearson. Selected sections. B1
  2. Benassy-Quere, A., B. Coeure, P. Jacquet, and J. Pisani-Ferry (2019), Economic Policy: Theory and Practice, 2nd Edition, Chapters 3-6. BCJP
  3. Blanchard, O. (2019), “Public Debt: Fiscal and Welfare Costs in a Time of Low Interest Rates”, PIIE Policy Brief 19-2. Available at https:/​/​www.piie.com/​publications/​policy-briefs/​public-debt-fiscal-and-welfare-costs-time-low-interest-rates
  4. Merler, S. and J. Pisani-Ferry (2012), “Sudden Stops in the Euro Area”, Bruegel Policy Contribution, Issue 2012/06, Brussels. Available at https:/​/​www.econstor.eu/​bitstream/​10419/​72106/​1/​689515472.pdf
  5. Pench, L. (2025), “Dilemmas for the EU in Deficit-Financing of Defence Expenditure and Maintenance of Fiscal Discipline”, Working Paper 03/2025, Bruegel. Available at https:/​/​www.bruegel.org/​sites/​default/​files/​2025-04/​WP%2003%202025.pdf
  6. Hougaard Jensen, S. and D. Schoenmaker (2020), “Should Denmark and Sweden Join the Banking Union?”, Journal of Financial Regulation, vol. 6, pp. 317–326. DOI:  https:/​/​doi.org/​10.1093/​jfr/​fjaa005.
  7. Intereconomics (2023), The Value Added of Central Bank Digital Currencies, https:/​/​www.intereconomics.eu/​contents/​year/​2023/​number/​4/​article/​the-value-added-of-central-bank-digital-currencies.html
  8. Draghi, M. (2024), The future of European competitiveness. Part A:  A competitiveness strategy for Europe, available at https:/​/​commission.europa.eu/​document/​download/​97e481fd-2dc3-412d-be4c-f152a8232961_en
  9. Eichengreen, B. (2023), “The Danish Problem”, Economia Politica 40:781–794, available at https:/​/​doi.org/​10.1007/​s40888-023-00313-y
  10. Jones, C. (2025), “Can the Fed stay independent under Trump? “, Financial Times, July 10. Available at https:/​/​www.ft.com/​content/​3b525be4-e83b-4bea-b206-c3afe1c8e57c

 
Last updated on 30-01-2026