Economic Growth, Crisis, and Integration in Europe (ECO137)

The course aims to provide the readers with knowledge of what exactly changed in the European economy from medieval times until today, why those changes, crises, revolutions and transitions happened, what were the effects of these changes on an average citizen and what is the impact of them on today’s macroeconomic thought. After the course the students should be able to answer why modern economic growth started in Western Europe, how it accelerated the growth in the continent and establishment of Europe as the world leader in living standards. They should also be able to distinguish the reasons why certain parts of Europe are and/or have been better off than others and trace the origins of modern economic thought and its alternatives with empirical examples of how versions of these policies worked in the past. The course also aims to distinguish the key obstacles to European development, including the major crises, revolutions and humanitarian disasters which happened in the long-run past as well as in the recent decades. Importantly, the readers of the course will learn about the most important consequences and lessons European countries faced and learned through the uneven historical growth pattern. By the end of the course, the students will be able to comprehend the impact of European economic integration as the main driver of long-term growth, prosperity and peace in the continent. The overall goal of the course is to invite the student to accept or to challenge the idea of further European integration based on its economic history.

• Understanding the concept of GDP as the main macroeconomic indicator, being able to make assumptions about a country from GDP and GDP per capita data.
• Being aware of the major developments in European economy before the industrial revolution, after its onset through the 20th century crises and disasters until today
• Understanding the reasons why Europe became the World’s leader in living standards
• Understanding the major crises, transformations, revolutions and other events which shaped European economy from medieval ages to the 21st century
• Being able to critically assess the impact of major crises, transformations, revolutions and other events on Europe’s economy, on the economies of individual countries and on the well-being of an average European. Also being able to draw lessons that Europe should or have learned from these major events.
• Being aware of the long-run reasons why different parts of Europe have divergent living standards
• Understanding the reasons why certain parts of Europe developed or chose different economic systems in the 20th century and the results of these divergent systems were.
• Understanding the pivotal role of European disunity and integration in relation to the growth of European living standards, productivity and ability to withstand recessions.
• Being able to comprehend, critically assess and present the most influential research papers assigned