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Economics of Monetary Union

Thirteenth Edition

Paul De Grauwe

April 2020

ISBN: 9780198849544

304 pages

In Stock

Price: £47.99

Comprehensive, current, and unique in approach: the only textbook to discuss both the costs and benefits of monetary unions.



The only textbook to discuss both the costs and benefits of monetary unions. The author addresses current issues surrounding the Eurozone and takes a critical approach in analysing the theories and policies relating to monetary union.

  • 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
  • Also available as an e-book with functionality, navigation features, and links that offer extra learning support

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

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


"An ideal book for students. The author strikes the perfect balance between the pedagogical needs of the students and thorough treatment of the concepts. Challenging topics and insightful analysis are introduced in a clear and coherent manner." - Dimitrios Syrrakos, Professor of Economics, Policy, and International Business, Manchester Metropolitan University

"An excellent text that covers all major topics concerning monetary union and introduces students to all the key debates on the subject." - Johannes Schmidt, Professor of Economics, Karlsruhe University of Applied Sciences

"Rigorous, original, and clear. The perfect textbook for both undergraduate and postgraduate students who want to understand the economic reasoning behind the monetary union in the Euro Area." - Miguel Angel Gavilan-Rubio, Lecturer in Economics, University of Essex

Additional Resources

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