Origins of the Crisis in the Eurozone

Eugene Lang College Lib Arts: Economics

Liberal Arts

Undergraduate Course

Degree Students

Eurozone Crisis Origins

Fall 2019

Taught By: Oriol Valles Codina

Section: A

CRN: 7496

Credits: 4

In the winter of 2012, the Eurozone was on the brink of collapse. The shockwaves of the 2008 Wall Street financial meltdown in the US had reached the euro, which was an unprecedented experiment in forging a common currency among 19 states beginning in the early 1990s and a hallmark feature of the neoliberal era. A collective sovereign debt crisis in the South, correlated with a highly indebted, enormous financial sector in the North, threatened the very existence of the eurozone. It was a system that was not only too big to fail, but also too big to bail. Structural adjustment programs were applied for the first time to developed economies, leading to the emergence of populist movements both left and right all around Europe. Though unique to its historical context, this crisis nevertheless bears similarity to the chaotic aftermath of the breakup of the gold standard in the early 1930s. The crisis in the Eurozone has thus become a testing ground for many contemporary economic theories in political competition, ranging from the orthodox, neoclassical tradition and New Keynesianism to more heterodox approaches blending post-Keynesianism and classical political economy. In this course, we will explore the origins and development of the crisis in the Eurozone from both a logical and a historical point of view, addressing pressing economic questions in the political agenda such as trade imbalances, financialization, or labor market reform, as well as understanding the deep history of the European Union. We will analyze the main players’ decisions and actions in this historical drama, the economic theories on which these are based, and the political and economic circumstances surrounding each of them. After successful completion of the course, students will have a good understanding of the mechanisms underlying the crisis, different views on the origins of crisis, as well as the political economy aspects of their management.

College: Eugene Lang College Lib Arts (LC)

Department: Economics (LECO)

Campus: New York City (GV)

Course Format: Seminar (R)

Max Enrollment: 20

Enrollment Status: Open*

*Enrollment status information is updated every five minutes. The status of this course may have changed since the last update. Open seats may have restrictions that will prevent some students from registering. Updated: 11:31am 7/23/2019

Meeting Info:

Days: Monday, Wednesday

Times: 12:00pm - 1:40pm

Building: Eugene Lang 65 W11th

Room: 261

Date Range: 8/26/2019 - 12/16/2019