Lab: Financialization
A.Y. 2025/2026
Learning objectives
Financialization is one of the most important event of the past 50 years due to its huge impact on our societies: operating transnationally, thus limiting the ability of governments to act, and also affecting people's daily lives.
Financialization is a multidisciplinary topic involving economics, finance, sociology and history. The course will combine all these different perspectives to connect them and offer a broad picture of the complex phenomenon.
Financialization is a multidisciplinary topic involving economics, finance, sociology and history. The course will combine all these different perspectives to connect them and offer a broad picture of the complex phenomenon.
Expected learning outcomes
At the end of the course, students are expected to be able to understand and evaluate:
- Historical and practical analysis of the great social and cultural economic change that occurred in the 1970s and 1980s
- Trend and growth of private wealth and its distribution
- Explanation of how banks became creators of money and thus allowed the explosion of "leverage," which is the fundamental tool that enabled the great growth of financialization
- An analysis of the "wealth divide," a phenomenon that has been little explored and instead underlies the current development of inequality
- A strong focus on the impact of financialization on all aspects of human life
- Historical and practical analysis of the great social and cultural economic change that occurred in the 1970s and 1980s
- Trend and growth of private wealth and its distribution
- Explanation of how banks became creators of money and thus allowed the explosion of "leverage," which is the fundamental tool that enabled the great growth of financialization
- An analysis of the "wealth divide," a phenomenon that has been little explored and instead underlies the current development of inequality
- A strong focus on the impact of financialization on all aspects of human life
Lesson period: Third trimester
Assessment methods: Giudizio di approvazione
Assessment result: superato/non superato
Single course
This course cannot be attended as a single course. Please check our list of single courses to find the ones available for enrolment.
Course syllabus and organization
Single session
Responsible
Lesson period
Third trimester
Course syllabus
The course will focus on topics that are often overlooked yet highly significant, and it will adopt a practical and engaging approach by connecting theoretical insights with real-world consequences. In particular, it will cover:
A historical and practical analysis of the major economic, social, and cultural transformations that took place in the 1970s and 1980s
The evolution and growth of private wealth and its distribution
An explanation of how banks became creators of money, enabling the explosion of leverage—one of the key drivers behind the rise of financialization
An in-depth look at the "wealth divide," a phenomenon rarely explored in detail, yet crucial to understanding the current dynamics of inequality
A strong focus on the impact of financialization on all aspects of human life, illustrated through a wide range of concrete examples and case studies
Financialization is a multidisciplinary topic that intersects economics, finance, sociology, and history. The course will draw from all these perspectives in order to connect them and offer a comprehensive understanding of the phenomenon and its complexity.
A historical and practical analysis of the major economic, social, and cultural transformations that took place in the 1970s and 1980s
The evolution and growth of private wealth and its distribution
An explanation of how banks became creators of money, enabling the explosion of leverage—one of the key drivers behind the rise of financialization
An in-depth look at the "wealth divide," a phenomenon rarely explored in detail, yet crucial to understanding the current dynamics of inequality
A strong focus on the impact of financialization on all aspects of human life, illustrated through a wide range of concrete examples and case studies
Financialization is a multidisciplinary topic that intersects economics, finance, sociology, and history. The course will draw from all these perspectives in order to connect them and offer a comprehensive understanding of the phenomenon and its complexity.
Prerequisites for admission
No prerequisite is needed
Teaching methods
Each session will include a first part consisting of a lecture, followed by a discussion of the topic covered. After each class, a set of slides summarizing the main points will be distributed. Students are encouraged to read the recommended readings after the corresponding sessions, as they are designed to deepen the material and require prior introduction.
Teaching Resources
· First Meeting: The Previous World You Didn't Experience - and Its Crisis**
**Readings**
* Gerstle, Gary (2022), *The Rise and the Fall of the Neoliberal Order*, Oxford University Press, pp. 19-27
* Berend, Ivan T. (2006), *An Economic History of Twentieth-Century Europe*, Cambridge University Press, pp. 190-210
· Second Meeting: The Way Out of the Crisis through Neoliberalism and Globalization**
**Readings**
* Gerstle, Gary (2022), *The Rise and the Fall of the Neoliberal Order*, Oxford University Press, pp. 56-64, 83-120
* Berend, Ivan T. (2006), *An Economic History of Twentieth-Century Europe*, Cambridge University Press, pp. 246-270
· Third Meeting: Financialization - Definitions, Evidence, and Its Economic and Cultural Interpretations**
**Readings**
* Krippner, Greta R. (2012), *Capitalizing on Crisis*, Harvard University Press, pp. 27-57
· Fourth Meeting: The "Drivers" of Financialization - Private Wealth and Financial Leverage**
**Readings**
* Piketty, Thomas (2014), *Capital in the Twenty-First Century*, Harvard University Press, pp. 164-198
* Patel, Rupal; Meaning, Jack (2022), *Can We Just Print More Money?*, The Bank of England, pp. 158-181
· Fifth Meeting: The Morphology of Financialization Actors and Their Operating Methods**
**Readings**
* Foroohar, Rana (2017), *Makers and Takers: How Wall Street Destroyed Main Street*, Crown Business, pp. 209-236
* Cooper, George (2008), *The Origin of Financial Crises*, Vintage Books, pp. 93-125
· Sixth Meeting: The Financialization of All Goods and Its Impact on Society and People's Lives**
**Readings**
* Kockelkon, Anne (2022), *Architectural Theory Review: Financialized Berlin: The Monetary Transformation of Housing, Architecture and Polity*
[Link](https://www.tandfonline.com/doi/full/10.1080/13264826.2022.2104889)
* Mader, Philip; Mertens, Daniel; Van der Zwan, Natasha (2002), *The Routledge International Handbook of Financialization*, pp. 200-210
* Wray, Randall L. (2008), *The Levy Economics Institute of Bard College: The Commodities Bubble*
[Link (free)](https://www.levyinstitute.org/pubs/ppb_96.pdf)
* Daniel, Emanuel (2023), *The Great Transition*, World Scientific Publishing, pp. 37-51
· Seventh Meeting: Economic, Cultural and Sociological Mechanisms of Financialization**
**Readings**
* Palley, Thomas I. (2012), *From Financial Crisis to Stagnation*, Cambridge University Press, pp. 57-78
* Krippner, Greta R. (2012), *Capitalizing on Crisis*, Harvard University Press, pp. 138-150
· Eighth Meeting: The Key Impact of Financialization - The "Wealth Divide"**
**Readings**
* Killewald, Alexandra; Pfeffer, Fabian T.; Schachner, Jared N. *Annual Review of Sociology: Wealth Inequality and Accumulation*
[Link (paywalled)](https://www.annualreviews.org/doi/abs/10.1146/annurev-soc-060116-053331)
· Ninth Meeting: The Influence of Financialization on Major Economic/Financial Events of the Past 20 Years and the Debate on the Role of the State vs. Markets**
**Readings**
* Caballero, R.J.; Farhi, E. (2012), *On the Role of Safe Asset Shortages in Secular Stagnation*
[Link (free)](https://economics.mit.edu/sites/default/files/publications/cepr2014.pdf)
* Appleby, Joyce (2011), *The Relentless Revolution*, W\.W. Norton & Company, pp. 400-417
* *Rodrik's Trilemma and Its Consequences*
[Link (free)](https://www.projectstatecraft.org/post/rodrik-s-trilemma-anitsconsequences#:~:text=Introduction%3A%20Rodrik's%20Trilemma&text=States%20can%20restrict%20democracy%20in,sovereignty%20%28Rodrick%2C%202011%29)
· Tenth Meeting: Discussion of All Course Topics with a View to Possible Future Developments**
**Readings**
* Mazzucato, Mariana (2021), *Mission Economy*, Laterza, pp. 185-191
* Appleby, Joyce (2011), *The Relentless Revolution*, W\.W. Norton & Company, pp. 422-436
* Bowman, Sam, *In Defence of Neoliberalism*
[Link (free)](https://www.cis.org.au/wp-content/uploads/2017/09/33-3-bowman-sam.pdf)
**Readings**
* Gerstle, Gary (2022), *The Rise and the Fall of the Neoliberal Order*, Oxford University Press, pp. 19-27
* Berend, Ivan T. (2006), *An Economic History of Twentieth-Century Europe*, Cambridge University Press, pp. 190-210
· Second Meeting: The Way Out of the Crisis through Neoliberalism and Globalization**
**Readings**
* Gerstle, Gary (2022), *The Rise and the Fall of the Neoliberal Order*, Oxford University Press, pp. 56-64, 83-120
* Berend, Ivan T. (2006), *An Economic History of Twentieth-Century Europe*, Cambridge University Press, pp. 246-270
· Third Meeting: Financialization - Definitions, Evidence, and Its Economic and Cultural Interpretations**
**Readings**
* Krippner, Greta R. (2012), *Capitalizing on Crisis*, Harvard University Press, pp. 27-57
· Fourth Meeting: The "Drivers" of Financialization - Private Wealth and Financial Leverage**
**Readings**
* Piketty, Thomas (2014), *Capital in the Twenty-First Century*, Harvard University Press, pp. 164-198
* Patel, Rupal; Meaning, Jack (2022), *Can We Just Print More Money?*, The Bank of England, pp. 158-181
· Fifth Meeting: The Morphology of Financialization Actors and Their Operating Methods**
**Readings**
* Foroohar, Rana (2017), *Makers and Takers: How Wall Street Destroyed Main Street*, Crown Business, pp. 209-236
* Cooper, George (2008), *The Origin of Financial Crises*, Vintage Books, pp. 93-125
· Sixth Meeting: The Financialization of All Goods and Its Impact on Society and People's Lives**
**Readings**
* Kockelkon, Anne (2022), *Architectural Theory Review: Financialized Berlin: The Monetary Transformation of Housing, Architecture and Polity*
[Link](https://www.tandfonline.com/doi/full/10.1080/13264826.2022.2104889)
* Mader, Philip; Mertens, Daniel; Van der Zwan, Natasha (2002), *The Routledge International Handbook of Financialization*, pp. 200-210
* Wray, Randall L. (2008), *The Levy Economics Institute of Bard College: The Commodities Bubble*
[Link (free)](https://www.levyinstitute.org/pubs/ppb_96.pdf)
* Daniel, Emanuel (2023), *The Great Transition*, World Scientific Publishing, pp. 37-51
· Seventh Meeting: Economic, Cultural and Sociological Mechanisms of Financialization**
**Readings**
* Palley, Thomas I. (2012), *From Financial Crisis to Stagnation*, Cambridge University Press, pp. 57-78
* Krippner, Greta R. (2012), *Capitalizing on Crisis*, Harvard University Press, pp. 138-150
· Eighth Meeting: The Key Impact of Financialization - The "Wealth Divide"**
**Readings**
* Killewald, Alexandra; Pfeffer, Fabian T.; Schachner, Jared N. *Annual Review of Sociology: Wealth Inequality and Accumulation*
[Link (paywalled)](https://www.annualreviews.org/doi/abs/10.1146/annurev-soc-060116-053331)
· Ninth Meeting: The Influence of Financialization on Major Economic/Financial Events of the Past 20 Years and the Debate on the Role of the State vs. Markets**
**Readings**
* Caballero, R.J.; Farhi, E. (2012), *On the Role of Safe Asset Shortages in Secular Stagnation*
[Link (free)](https://economics.mit.edu/sites/default/files/publications/cepr2014.pdf)
* Appleby, Joyce (2011), *The Relentless Revolution*, W\.W. Norton & Company, pp. 400-417
* *Rodrik's Trilemma and Its Consequences*
[Link (free)](https://www.projectstatecraft.org/post/rodrik-s-trilemma-anitsconsequences#:~:text=Introduction%3A%20Rodrik's%20Trilemma&text=States%20can%20restrict%20democracy%20in,sovereignty%20%28Rodrick%2C%202011%29)
· Tenth Meeting: Discussion of All Course Topics with a View to Possible Future Developments**
**Readings**
* Mazzucato, Mariana (2021), *Mission Economy*, Laterza, pp. 185-191
* Appleby, Joyce (2011), *The Relentless Revolution*, W\.W. Norton & Company, pp. 422-436
* Bowman, Sam, *In Defence of Neoliberalism*
[Link (free)](https://www.cis.org.au/wp-content/uploads/2017/09/33-3-bowman-sam.pdf)
Assessment methods and Criteria
To receive a final assessment, students are required to attend at least 8 out of 10 sessions. Active participation during the meetings is expected. By the end of the course, students must submit a short essay analyzing one of the aspects discussed during the sessions.
SECS-P/12 - ECONOMIC HISTORY - University credits: 3
Lessons: 19.8 hours