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A Dynamic Economic and Monetary Union

Objective

In response to the European debt crisis and associated deep recession, a number of important steps have recently been taken towards redesigning the institutional architecture of EMU, based on the roadmap outlined in the Van Rompuy Report (2012). But these institutional innovations – in particular the ‘fiscal compact’, the ESM, the SSM and the SRM – retain relatively weak theoretical foundations. In particular, there is a noticeable gap between policy-oriented analyses of the precise EU challenges, and the major developments in dynamic macroeconomic theory of the past three decades.
ADEMU brings together eight research groups from leading European institutions with the aim of closing this gap. It studies the overall monetary and fiscal structure of the EU and the euro area, and the mechanisms of fiscal policy coordination among member states, with specific focus on: i) ensuring the long-term sustainability of EMU, addressing issues such as debt overhang, fiscal consolidation, public debt management, risk-sharing within the union, and crisis management mechanisms; ii) building resilience to economic shocks, with special emphasis on the coordination of fiscal policies, fiscal multipliers and labor market risks; and iii) managing interdependence in the euro area, analyzing both fiscal and financial spillovers and the effects of macroeconomic imbalances on financial and money markets, and, to confront these issues, new forms of banking regulation and monetary policy.
ADEMU is at the frontier of dynamic macroeconomic research, and the project will generate new knowledge that will be used to provide a rigorous assessment of the current institutional framework, and detailed proposals for improving it. It will also be a focal point in debates among academics, policymakers and other stakeholders regarding the implementation of new policies. The scope of the project will include a full consideration of political economy and legal dimensions to alternative institutional reforms

Call for proposal

H2020-EURO-SOCIETY-2014
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Coordinator

EUROPEAN UNIVERSITY INSTITUTE
Address
Via Dei Roccettini 9
50014 Fiesole
Italy
Activity type
Higher or Secondary Education Establishments
EU contribution
€ 466 031

Participants (7)

THE CHANCELLOR MASTERS AND SCHOLARS OF THE UNIVERSITY OF CAMBRIDGE
United Kingdom
EU contribution
€ 314 645
Address
Trinity Lane The Old Schools
CB2 1TN Cambridge
Activity type
Higher or Secondary Education Establishments
RHEINISCHE FRIEDRICH-WILHELMS-UNIVERSITAT BONN
Germany
EU contribution
€ 280 490
Address
Regina Pacis Weg 3
53113 Bonn
Activity type
Higher or Secondary Education Establishments
FONDATION JEAN-JACQUES LAFFONT,TOULOUSE SCIENCES ECONOMIQUES
France
EU contribution
€ 284 712
Address
Allee De Brienne, Manufacture Des Tabacs 21
31000 Toulouse
Activity type
Research Organisations
UNIVERSITY COLLEGE LONDON
United Kingdom
EU contribution
€ 233 288
Address
Gower Street
WC1E 6BT London
Activity type
Higher or Secondary Education Establishments
UNIVERSIDADE CATOLICA PORTUGUESA
Portugal
EU contribution
€ 229 540
Address
Palma De Cima
1649 023 Lisboa
Activity type
Higher or Secondary Education Establishments
FUNDACIO PRIVADA BARCELONA GRADUATE SCHOOL OF ECONOMICS
Spain
EU contribution
€ 436 278
Address
Calle Ramon Trias Fargas 25 27
08005 Barcelona
Activity type
Higher or Secondary Education Establishments
UNIVERZITA KARLOVA
Czechia
EU contribution
€ 255 015
Address
Ovocny Trh 560/5
116 36 Praha 1
Activity type
Higher or Secondary Education Establishments