B5584 - POLITICS OF MONEY AND FINANCE

Learning outcomes

Using the perspective of political science, this course offers an introduction to the political economy of money and finance. Understanding, and questioning, the evolution of the global monetary and financial order and its democratic accountability is also an integral part of the course. Students will learn to: 1. understand the political drivers of globalization and of global monetary and financial orders over time; 2. familiarize with the theoretical debates and methodologies used to measure and assess global economic and financial integration; 3. identify the key actors and institutions that pinpoint the contemporary monetary and financial order as well as its distributional consequences; 4. understand why policy space is reduced for many countries, especially developing and emerging market countries; 5. develop the analytical tools to reflect about alternative institutional and policy arrangements.

Course contents

A decades-long process of economic and financial integration has significantly transformed the way governments and socio-economic actors interact and respond to transnational challenges. Any attempt to address the major political challenges of our time, from the fight against inequality to those against climate change, must confront the realities – and constraints – of the global monetary and financial order.

The course introduces students to the political analysis of the global monetary and financial order, its historical evolution and contemporary challenges such as, for example, those associated with climate change and the use of new technologies.

The first part of the course presents the main theoretical approaches, themes and horizontal questions that characterize the analyzes relating to the monetary and financial order. The second part of the course deals with specific themes, linked to the current political challenges that the monetary order faces.

The course is made up of two sections: 1. frontal lessons section (16 hours) and 2. seminar section (12 hours) as indicated in the timetable below. For the seminar section, students are divided into two groups and attend one of the two meetings scheduled for each seminar. Students are required to come to class having already read the assigned material (present on Virtuale). Active participation in the classroom is required.

 

PARTE 1 – Lessons

1. Introduction: What’s the link between Politics and Money? (16 settembre)

   Kirshner, J. (2003) "Money is Politics." Review of International Political Economy 10(4): 645–660.

2. The political origins of financial globalization (17 settembre)

   Helleiner, E. (1994) States and the reemergence of global finance: from Bretton Woods to the 1990s. Ithaca, NY, Cornell University Press. – Chapter 1

3. The political consequences of financial globalization (23 settembre)

   Mosley, L. (2000) "Room to Move: International Financial Markets and National Welfare States." International Organization 54(04): 737-773.

   Walter, S. (2021) "The Backlash Against Globalization." Annual Review of Political Science 24: 421-442.

4. The historical evolution of the global monetary and financial system (24 settembre)

   Moschella, M. (2013) Governare la Finanza Globale. Istituzioni, processi decisionali e politiche pubbliche Bologna, Il Mulino.Capitolo 2. || For international students: Randall Germain, “The Historical Origins and Development of Global Financial Governance”, in Handbook of Global Economic Governance, eds Manuela Moschella and Catherine Weaver (Routledge, 2014), pp. 97-114

5. Who governs the system? Key actors (30 settembre)

   Moschella, M. (2013) Governare la Finanza Globale. Istituzioni, processi decisionali e politiche pubbliche Bologna, Il Mulino. Capitolo 3 |

   For international students:

   Broome, A. (2014), Issues and Actors in the Global Political Economy, Chap. 4-6

6. Private authority (1 ottobre)

   Barta, Z. and A. Johnston (2018) "Rating Politics? Partisan Discrimination in Credit Ratings in Developed Economies." Comparative Political Studies 51(5): 587 - 620.

    
7. Monetary power and the weaponization of money (7 ottobre)

   Farrell, H. and A. L. Newman (2019) "Weaponized Interdependence: How Global Economic Networks Shape State Coercion." International Security 44(1): 42-79.

8. Democracy and legitimacy in global financial governance (8 ottobre)

Moschella, M. (2013) Governare la Finanza Globale. Istituzioni, processi decisionali e politiche pubbliche Bologna, Il Mulino - Capitolo 4

For international students:

Scholte JA (2011) Towards greater legitimacy in global governance. Review of International Political Economy 18, 110-120.

 

PARTE 2- Seminari

1. The dollar and its contenders (14 ottobre gruppo 1 e 15 ottobre gruppo 2)

   McDowell, D. (2023) Bucking the Buck. US Financial Sanctions and the International Backlash against the Dollar. Oxford, Oxford University Press. – Chapter 2

2. Financing the green transition (21 ottobre gruppo 1 e 22 ottobre gruppo 2)

   Review of International Political Economy, Special issue on Macrofinancial Regimes and the Politics of Transition

3. Money and technology: Digital money and cryptocurrencies (4 novembre gruppo 1 e 5 novembre gruppo 2)

   Chey, H. kyu. (2022). Cryptocurrencies and the IPE of money: an agenda for research. Review of International Political Economy, 30(4), 1605–1620.

4. The global consequences of financial contagion (11 novembre gruppo 1 e 12 novembre gruppo 2)

   Reinhart, C. M. (2009) This time is different: eight centuries of financial folly. Princeton, N.J.: Princeton Univ. Press, Chapter 1 and 15

5. The Washington Consensus (18 novembre gruppo 1 e 19 novembre gruppo 2)

   Babb, S. (2012). The Washington Consensus as transnational policy paradigm: Its origins, trajectory and likely successor. Review of International Political Economy, 20(2), 268–297.

6. Monetary cooperation: the case of the European Monetary Union (25 novembre gruppo 1) Moschella, M., L. Quaglia and A. Spendzharova (2023). European Political Economy. Theoretical approaches and policy issues, Oxford University Press – Chapter 5

7. Wtitten exam for students who attend the course (26 ovembre)

   
   

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Readings/Bibliography

The bibliographic material to be used is indicated in the timetable above, organized by topics addressed in the classroom. The bibliography is also reported below, in order of class presentation. International and Erasmus students are not expected to read the material in Italian but only the one in English.

In addition to the articles and chapters indicated above, 'extra' materials will be uploaded to Virtuale, i.e. short readings and videos, only relating to the seminar section of the course. Students who attend the course are expected to read the 'extra' material in order to foster active participation during the six seminars indicated above.

 

Bibliography

Kirshner, J. (2003) "Money is Politics." Review of International Political Economy 10(4): 645–660.

Helleiner, E. (1994) States and the reemergence of global finance: from Bretton Woods to the 1990s. Ithaca, NY, Cornell University Press. – Chapter 1

Mosley, L. (2000) "Room to Move: International Financial Markets and National Welfare States." International Organization 54(04): 737-773.

Walter, S. (2021) "The Backlash Against Globalization." Annual Review of Political Science 24: 421-442.

Moschella, M. (2013) Governare la Finanza Globale. Istituzioni, processi decisionali e politiche pubbliche Bologna, Il Mulino. Capitolo 2

Germain, R. “The Historical Origins and Development of Global Financial Governance”, in Handbook of Global Economic Governance, eds Manuela Moschella and Catherine Weaver (Routledge, 2014), pp. 97-114.

Moschella, M. (2013) Governare la Finanza Globale. Istituzioni, processi decisionali e politiche pubbliche Bologna, Il Mulino. Capitolo 3

Broome, A. (2014), Issues and Actors in the Global Political Economy, Chap. 4-6

Barta, Z. and A. Johnston (2018) "Rating Politics? Partisan Discrimination in Credit Ratings in Developed Economies." Comparative Political Studies 51(5): 587 - 620.

Farrell, H. and A. L. Newman (2019) "Weaponized Interdependence: How Global Economic Networks Shape State Coercion." International Security 44(1): 42-79.

Moschella, M. (2013) Governare la Finanza Globale. Istituzioni, processi decisionali e politiche pubbliche Bologna, Il Mulino - Capitolo 4

Scholte JA (2011) Towards greater legitimacy in global governance. Review of International Political Economy 18, 110-120.

McDowell, D. (2023) Bucking the Buck. US Financial Sanctions and the International Backlash against the Dollar. Oxford, Oxford University Press. – Chapter 2

Paterson M (2020) Climate change and international political economy: between collapse and transformation. Review of International Political Economy 28, 394-405.

Chey, H. kyu. (2022). Cryptocurrencies and the IPE of money: an agenda for research. Review of International Political Economy, 30(4), 1605–1620.

Reinhart, C. M. (2009) This time is different: eight centuries of financial folly. Princeton, N.J.: Princeton Univ. Press, Chapter 1 pp.1-20

Babb, S. (2012). The Washington Consensus as transnational policy paradigm: Its origins, trajectory and likely successor. Review of International Political Economy, 20(2), 268–297.

Moschella, M., L. Quaglia and A. Spendzharova (2023). European Political Economy. Theoretical approaches and policy issues, Oxford University Press – Chapter 5

Teaching methods

Lessons and seminars

Assessment methods

Students who regularly attend lessons will be assessed through (a) the delivery of a power point presentation and (b) a final written exam. The details of the power point presentation will be discussed in class. The final written exam will consist of 2 open-ended questions. To prepare for the exam, students are expected to study all articles and chapters assigned for each lesson and seminar as indicated in the course program above. The 'extra' materials uploaded to Virtuale will not be part of the final examination. 

Students who DO NOT regularly attend teh course will be assessed through a final written exam. The exam will consist of 3 open-ended questions. To prepare for the exam, students are expcted to study all articles and chapters assigned for each lesson and seminar as indicated above. The evaluation of the final written exam, both for attending and non-attending students, will be based on the following three criteria:

• Correctness of contents
• Clarity in the exposition of contents
• Ability to make logical connections and draw implications

Grading of the Final Exam:

• Grade 18–19: Responses show only a basic correctness of contents, with limited clarity in the exposition of contents. There is minimal ability to make logical connections or draw implications, and overall language is correct but simple.
• Grade 20–24: Responses reflect a sufficient correctness of contents and acceptable clarity in the exposition of contents. There is evidence of a basic ability to make logical connections and draw implications, with correct use of language.
• Grade 25–29: Responses reflect strong correctness of contents, clarity in the exposition of contents, and an ability to make autonomous choices of critical analysis, including effective use of specific terminology. There is a good ability to make logical connections and draw implications.
• Grade 30–30L: Responses show excellent correctness of contents and clarity in the exposition of contents, as well as a high ability to make logical connections, draw implications, and self-reflect. The student demonstrates full command of specific terminology, the ability to argue effectively, and strong critical thinking.

 

Office hours

See the website of Manuela Moschella