Prof. Michael C. Burda, Ph.D.

The course Economic Integration studies both theoretical and policy aspects of
regional economic integration processes. To achieve this objective, it employs standard
tools of macroeconomics, trade theory, and labor economics. The course will primarily
rely on intuitive analyses of these issues, relying more on graphical methods than formal
mathematical models. The following topics will be considered with the nations of Europe
as a working example: mechanisms of real integration and convergence of national and
regional economies, including economic growth, trade, factor mobility, efficiency gains
and fiscal transfers; the theory of currency unions and optimal currency areas;
advantages and disadvantages of flexible exchange rates and fixed exchange rate
regimes, including monetary union. Special attention will be paid to the implications of
the financial and fiscal crises for the future of the Euro.