Macroeconomic Policy in the EU

Coordinator: dr. B.A. Brugemann

Lecturers: dr. B.A. Brugemann

  • Bjoern Bruegemann
    Bjoern Bruegemann
Bjoern Bruegemann


Personal website

Fields: Macro, Labor, Micro


Massachusetts Institute of Technology (2004)

Professional experience:

Assistant Professor of Economics, Yale University (July 2004 until June 2011)


Associate Editor, European Economic Review

Visiting Positions:

University of Pennsylvania, CREI, CESIfo, University of Konstanz

Research interests:


Courses taught

VU: Macroeconomics II (Bachelor)
AUC: Advanced Macroeconomics
TI: Macroeconomics I, Topics in Advanced Macroeconomics

Selected  publications

“Does Employment Protection Create Its Own Political Support?” (2012), Journal of the European Economic Association 10, 369-416.

“Rent Rigidity, Asymmetric Information, and Volatility Bounds in Labor Markets” (2010), with Giuseppe Moscarini, Review of Economic Dynamics 13, 575 – 596

“Employment Protection: Tough to Scrap or Tough to Get?” (2007), The Economic Journal, 117 (521), F386 – F415

Course objective

After this course you will have:
– Ability to contribute to the debate about the future of EMU based on solid economic insights and analysis
– Knowledge of institutional aspects of monetary, fiscal, and financial policy in the EU
– Knowledge of relevant theories and empirical evidence concerning monetary, fiscal, and financial decision making in the EU
– Improved writing skills through development of a policy brief

Course content

The ongoing crisis of the Eurozone has exposed important weaknesses in the construction of the Economic and Monetary Union of the European Union (EMU). In this course we will study policy coordination and decision making in the EU, covering monetary policy, fiscal policy, and financial policy. To develop a well-rounded understanding of the issues, we will study relevant economic theories, examine the pertinent empirical evidence, and take into account key institutional aspects. The key objective of the course is to develop your ability to contribute to the debate about macroeconomic policy in Europe based on solid economic insights and analysis. You will practice this ability along with your writing skills through the development of a policy brief. The course consists or three parts, focusing on monetary, fiscal, and financial policy, respectively. Each part is largely self-contained. The first part on monetary policy is taught by Björn Brügemann (VU). In the second part, Arjan Lejour of the Centraal Planbureau (CPB) will focus on fiscal policy and institutions. In the final part, Neeltje van Horen of the Nederlandsche Bank (DNB) will focus on the financial sector.

Course reading

There is no textbook. The readings consist primarily of academic articles. Central readings are:
– Corsetti, G. and Pesenti, P. (2009). The simple geometry of transmission and stabilization in closed and open economies. In NBER International Seminar on Macroeconomics 200, University of Chicago Press.
– Oates, W. E. (2005). Toward a second-generation theory of fiscal federalism. International tax and public finance, 12(4):349–373.
– Bernanke, B. S. and Gertler, M. (1995). Inside the black box: The credit channel of monetary policy transmission. Journal of Economic Perspectives, 9(4):27–48.

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