graduate Economics

Content. The seminar will discuss issues currently on the minds of policymakers, with a particular focus on the size of the European Union and euro area and the interaction of macroeconomic policies and inflation. The emphasis is on applied empirical and analytical work in support of policy advice for governments and central banks.

Time and place. The seminar will take place Tuesday and Wednesday, December 15 and 16, 2026, from 9 am to about 5 pm. Location to be determined.

Course requirements.

(1) Presentation on the selected topic, followed by a discussion.

(2) Written seminar paper on the same topic, submitted by March 31, 2027.

Grading. Final grades will be based on the presentation & class participation (30 percent of grade) and the seminar paper (70 percent).

Next steps.

• Selected literature will be added to the course announcement by September 21 to help students start their research projects and prepare for their seminar presentations.
• Students sign up to the seminar between October 1 and October 16, indicating their preferred top-five topics.
• By November 2, topics will be allocated. Depending on the number of participants, some topics will have multiple presenters.
• Students submit their presentation slides by November 23. Students should read all presentations in preparation for the seminar.

Topics.

This year’s seminar will focus on the size of the European Union/euro area and the interaction of macroeconomic policies and inflation. A list of topics is below.

Size of the European Union and euro area

1. The ever-growing European Union? The macroeconomic costs and benefits of EU expansion from the perspective of new and old member states
2. Will the euro area ever be large enough? The economics of the optimal size of currency union and the case for and against expanding the euro area
3. Too many European Union members to decide anything? The rules and political economics of EU decision making, the implications of membership growth, and the pros and cons of alternative reform proposals
4. How did the ECB adjust decision making as euro area membership grew and what to think about it? The 2003 reform, its implementation, costs and benefits, and alternatives 

Macroeconomic policies and inflation

1. Is high inflation back to stay? The shocks and economic factors driving inflation in the 2020s, how they differ from the post-COVID surge to the war in the Middle East, and how inflation dynamics might have changed
2. If price setters have become more sensitive to inflation, will central banks have to change their ways to tame inflation? Monetary policy approaches might have to adjust when central banks are not certain whether future inflation dynamics might be different from the past and uncertainty is high  
3. Might fiscal policy have something to do with the resurgence of inflation? The ‘fiscal theory of the price level’ and other macroeconomic ideas suggesting that fiscal policy could play a role impacting inflation
4. Is a wave of spending going to make European public debt unsustainable? From defense to aging—the drivers of coming fiscal pressures and what to do about it in terms of of fiscal policy or structural reforms
5. Should and could central banks help a government struggling with too high spending and debt? The economic case for (or against) central bank independence when fiscal policy is struggling with high public debt
6. What actually happens when public debt is far too high? The principle solutions and the historical record of large debt reductions