Governance of the European Monetary Union Recasting Political, Fiscal and Financial Integration

The crisis in the euro area is a defining moment in the history of European integration. It has revealed major flaws in the architecture of the European Union; it has challenged European institutions to shape an appropriate response; and it has tested the patience of a European public that is eager to see their economic prospects improve again. This volume brings together some of the world’s top economists and policymakers to explain how this crisis came about and what is to be done. The policy agenda these chapters establish is going to be difficult to implement, not least because of popular misunderstanding and political opposition. This book argues, that it is essential that European policymakers push forward this agenda or they run the risk of seeing Europe’s economies fall back into crisis. This book was previously published as a special issue of the Journal of European Integration.

1. An ‘Economics’ Window on an Interdisciplinary Crisis Erik Jones & Francisco Torres 2. EMU: Old Flaws Revisited Francesco Giavazzi & Charles Wyplosz 3. Correcting for the Eurozone Design Failures: The Role of the ECBPaul De Grauwe & Yuemei Ji 4. Governance and Conditionality: Toward a Sustainable Framework?Lorenzo Bini Smaghi 5. Responses to the Euro Area Crisis: Measuring the Path of European Institutional Integration Francesco Paolo Mongelli, Ettore Dorrucci, Demosthenes Ioannou & Alessio Terzi 6. Avoiding Another Crisis in the Euro Area: Public and Private Imbalances and National Policy Responses Russell Kincaid & Max Watson 7. EMU and Sustainable Integration Iain Begg, Annette Bongardt, Kalypso Nicolai¨Dis & Francisco Torres 8. Getting the Story Right: How You Should Choose between Different Interpretations of the European Crisis (And Why You Should Care) Erik Jones 9. At Cross-purposes: Commercial versus Technocratic Governance of Sovereign Debt in the EUZsofia Barta & Waltraud Schelkle 10. The Making of a Continental Financial System: Lessons for Europe from Early American HistoryVitor Gaspar 11. Impossible Macroeconomic Trinity: The Challenge to Economic Governance in the EurozoneDavid Vines 12. Using Interdisciplinary Analysis to Shape a Policy AgendaErik Jones & Francisco Torres

Erik Jones is Professor of European Studies and International Political Economy and Director of European and Eurasian Studies at the Johns Hopkins School of Advanced International Studies. Francisco Torres is Visiting Senior Fellow in European Political Economy at the European Institute, London School of Economics and a Senior Member and PEFM Associate at St Antony’s College, Oxford. He is also Adjunct Professor at the Catholic University in Lisbon and an EU Steering Committee Member of the ECPR.