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Economics of the Monetary Union

Thirteenth Edition

Paul De Grauwe

Publication Date - June 2020

ISBN: 9780198849544

304 pages
9.7 x 7.4 inches

In Stock

Retail Price to Students: $60.00


The thirteenth edition of this market-leading textbook provides an authoritative and concise analysis of the theories and policies relating to monetary union in which the author helps students to critically think about the sustainability of the Eurozone.

Part One examines the implications of adopting a common currency by analysing Europe's experience and the issues faced by the European Central Bank. Part Two of the book looks at the problems of running a monetary union by analysing Europe's experience and the issues faced by the European Central Bank.

Each chapter ends with a conclusion recapping the core issues, and a set of questions, which encourages students to test their knowledge and stretch their understanding further.

This book is accompanied by the following online resources:

For students:
- Links to data sources
- Essay questions
- Web links
- Paul De Grauwe on Twitter

For Lecturers:
- PowerPoint slides
- Instructor's manual

New to this Edition

  • Updated evaluation in Chapter 8 of the new fiscal rules EU authorities have introduced since the sovereign debt crisis
  • Increased coverage in Chapter 9 of quantitative easing programme of the ECB
  • Additional discussion of the housing market in Chapter 12


  • The only textbook that discusses both the costs and benefits of monetary unions and the actual workings of the eurozone
  • Encourages students to examine the monetary union through theory, empirical analysis, and policy implications to ensure they gain a balanced understanding of different arguments and perspectives

About the Author(s)

Paul De Grauwe, John Paulson Chair in European Political Economy, London School of Economics

Table of Contents

    Part 1: Costs and Benefits of Monetary Union
    1. The costs of a common currency
    2. The theory of optimum currency areas: a critique
    3. The benefits of a common currency
    4. Costs and benefits compared
    Part 2: Monetary Union
    5. The fragility of incomplete monetary unions
    6. The transition to a monetary union
    7. How to complete a monetary union
    8. Political economy of deconstructing the Eurozone
    9. The European Central Bank
    10. Monetary policy in the Eurozone
    11. Fiscal policies in monetary unions
    12. The euro and financial markets