ABSTRACT
The study of both national macroeconomic policy and the economics of the European Union have attracted great academic attention. The whole corpus of international economic theory might of course be applicable to Europe, and some aspects, such as the theory of optimal currency zones derived from Mundell (1961) and McKinnon (1963) are particularly relevant. It is also arguable that the policy coordination literature derived from Hamada (1976) has a particular application to Europe, but here there has perhaps been little policy progress and hence little study of it. In addition there are studies of trade flows and exchange rate stability such as El-Agraa (1990) for the former and Giavazzi and Giovannini (1989) and Haldane and Hall (1991) for the latter.
