understand the function of the financial system
understand development on financial markets.

The course is an introduction to the Economic and Monetary Union (EMU). In this course we will focus on three main topics. First, we will study the necessary ingredients to create a successful monetary union. That is, we will study the theoretical framework called ”optimal currency areas”. We will also discuss if the European Union possess such characteristics. Second, we will study the main economic recession in recent years. We will talk about the European Financial crises as well as the European sovereign debt crises and how this catastrophic periods can be partly explained by the theory of optimal currency areas discussed in the first topic of this course. Third, we will study which policies are necessary to correct and improve the
EMU and which policies can prevent future economic and financial crises in the European Union.

Textbook and articles I

• An intermediate level of economics is recommended. Coverage of intermediate macroeconomics, exchange rates and microeconomics.
• In addition, basic econometrics courses (time series analyses and stationarity problems) and basic finance courses are required.
• Exchange students, can only enroll if they follow a Bachelor in economics at their home university.
• An advanced level of English.