Paul De Grauwe

John Paulson Chair in European Political Economy at the London School of Economics, European Institute
Author of Economics of Monetary Union

A distinguished expert on the economics of monetary union and European debt.

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Paul De Grauwe is a world-class economist whose work focuses on international economics, monetary systems, monetary integration, foreign-exchange markets, and open-economy issues.

He is a prolific author with numerous books to his credit, including Economics of Monetary Union. This highly regarded text, now in its 8th edition, explores theories and practice of monetary unions, costs and benefits of having one currency, and current issues involving the Euro. In his forthcoming book, The Limits of the Markets: The Pendulum between Government and Market (April 2017), Paul analyses the turning points in the pendulum swing of the dominance between the market or state.

Paul foresaw the financial crisis that is now rocking the European Union and the world: in a prescient piece, he warned that the Greece sovereign debt crisis would have a destabilizing effect on the entire Eurozone unless immediate actions were taken.

With a truly international outlook and a deep knowledge of US and European economic systems, he is a sought-after speaker and teacher. He has served as a visiting professor at some of the most prestigious universities in the world, including the University of Paris, the University of Michigan, the University of Pennsylvania, the University of Amsterdam, and the University of Milan.

Paul is a regular contributor to the Financial Times.


  • John Paulson Chair in European Political Economy at London School of Economics, European Institute
  • Former Professor of International Economics, University of Leuven, Belgium
  • Member Group of Economic Policy Analysis advising President Barroso, President of the European Commission
  • Director, Money, macro and international finance research network of CESifo, University of Munich
  • Research fellow, Centre for European Policy Studies in Brussels
  • Member, Belgian Parliament, 1991-2003
  • Visiting Scholar, IMF, Board of Governors of the Federal Reserve, Bank of Japan
  • PhD, Johns Hopkins University


The Limits of the Market

The Pendulum between Government and Market

Paul De Grauwe

The old discussion of 'Market or State' is obsolete. There will always have to be a mix of market and state. The only relevant question is what that mix should look like. How far do we have to let the market go its own way in order to create as much welfare as possible for everyone? What is the responsibility of the government in creating welfare? These are difficult questions. But they are also interesting questions and Paul De Grauwe analyses them in this book.

The desired mix of market and state is anything but easy to bring about. It is a difficult and sometimes destructive process that is constantly in motion. There are periods in history in which the market gains in importance. During other periods the opposite occurs and government is more dominant. The turning points in this pendulum swing typically seem to coincide with disruptive events that test the limits of market and state. Why we experience this dynamic is an important theme in the book.

Will the market, which today is afforded a greater and greater role due to globalization, run up against its limits? Or do the financial crisis and growing income inequality show that we have already reached those limits? Do we have to brace ourselves for a rejection of the capitalist system? Are we returning to an economy in which the government is running the show?

Oxford University Press; 1 edition (April 16, 2017)

Economics of Monetary Union

Paul De Grauwe

Economics of Monetary Union enables students to gain a firm understanding of the theories and policies relating to monetary unions. The author analyses the costs and benefits associated with having one currency, as well as the practical workings and current issues involved with the Euro. Recent global events are addressed in this new edition and coverage of the credit crisis and its implications for the Eurozone has been added. Other changes include further discussion of the world's other monetary unions and more analysis of the increasing role of the Euro as an international currency. The regularity with which this text is updated (every two years) ensures that it is topical and current which is of great importance to those studying the Economics of Monetary Unions.

OUP Oxford; 8 edition (23 July 2009)


Paul tailors each presentation to the needs of his audience and is not limited to the topics we have listed below. These are subjects that have proven valuable to customers in the past and are meant only to suggest his range and interests. Please ask us about any subject that interests you; we are sure that we can accommodate you.

The future of the euro

The Eurozone is a fragile construction. It is unclear that it can weather strong economic and political disturbances. Is the euro sustainable in the long-run? Can a currency without a country survive? What should be done to strengthen it to make sustainable? Or is it hopeless and it would be better to blow up the Eurozone as quickly as possible?

Limits of the market

The market system has been very successful in creating material welfare for billions of people. At the same time it is clear that it hits its limits today. What is the nature of these limits? I discuss the environmental limits and the problems created by inequality. The discussion is based on my forthcoming book: “The Limits of the Market”, Oxford University Press, 2017.

How to reboot the European Economy?

The European economies seem to be trapped in a low growth and secular stagnation trap. How did this happen? Has it anything to do with the Euro? Or is it the result of the worldwide “savings glut”? How to overcome this trap? What is the role of monetary and fiscal policies?


Brexit Would Be Bad News for EU | Bloomberg

The Future of the Euro