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 decade-long process of economic and financial integration has profoundly 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 tackling inequality to combating climate change—must take into account the realities and constraints of the global monetary and financial order.

This course introduces students to the political science analysis of the global monetary and financial order, its historical evolution, and its main contemporary challenges, including those related to the green transition and technological innovation. Particular attention is devoted to the role of the European Union as both a key actor and a case study for understanding the ongoing transformations in the global political economy.

The first part of the course presents the main theoretical approaches, themes, and cross-cutting questions that characterize the study of the monetary and financial order. The second part explores specific issues in greater depth, with a particular focus on the European Union, placing them within a comparative perspective.

The seminar component of the course is developed within the framework of the Jean Monnet Centre of Excellence EU Futures (2025–2028) and contributes to promoting excellence in European Studies through the analysis of key issues in monetary and financial affairs.

The course consists of a lecture component (16 hours) and a seminar component (12 hours), which are clearly identified in the syllabus below. For the seminar component, students are divided into two groups and attend one of the two seminar sessions offered for each meeting. Students are expected to come to class having completed the assigned readings (available on the Virtuale platform), and active participation in class discussions is required.

Readings/Bibliography

Testi/Bibliografia

The bibliographic material to be used is indicated in the timetable above, organized by topics addressed in the classroom.

In addition to the articles and chapters indicated below, '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.

PART 1 – LECTURES 

1. Introduction: What’s the link between Politics and Money?

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

2. The political origins of financial globalization

   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

   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

   Helleiner, E. (2016) The Evolution of the International Monetary and Financial System, in Global Political Economy, edited by J. Ravenhill

5. Who governs the system? Key actors

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

6. Private authority

   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

   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

Tallberg, Jonas, and Michael Zürn. 2019. "The Legitimacy and Legitimation of International Organizations: Introduction and Framework." The Review of International Organizations 14: 581-606.

PART 2- SEMINARS

The seminar component is part of the Jean Monnet Centre of Excellence “EU Futures” (2025-2028), and is designed to advance excellence in EU studies by engaging students with core debates in money and finance through an EU-centred and comparative approach.

1. Monetary cooperation and crises: the case of the European Monetary Union

   Schelkle, W. (2023), “Monetary integration, crises and solidarity” in Moschella, M., L. Quaglia and A. Spendzharova (2023). European Political Economy. Theoretical approaches and policy issues, Oxford University Press – Chapter 5

2. Monetary orders: The euro as a challenger to dollar dominance

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

3. Financing the green transition: The EU as a regulatory and financial actor

   Mertens, Daniel & Natascha van der Zwan (2026) Puzzling, powering, profiting: the politics of sustainable finance in the European Union, Journal of European Public Policy, 33:6, 1521-1542

4. The geopolitics of money and payment systems: The digital euro in comparative perspective

   Quaglia, Lucia, and Amy Verdun. 2025. "The Geoeconomics of Central Banks Digital Currencies: The Case of the European Central Bank." New Political Economy 30: 639-51.

5. The Politics of Development Finance: The European Investment Bank

   Mertens D and Thiemann M (2017) Building a hidden investment state? The European investment bank, national development banks and European economic governance. Journal of European Public Policy 26(1): 23–43.

6. Competitiveness: Industrial Policy and Economic Transformation in Europe

Di Carlo, Donato, Kathleen R. McNamara, and Manuela Moschella. 2026. "The New Politics of Eu Industrial Policy: From the Regulatory State to a Transformational State." Governance

Teaching methods

Lectures 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 and further details will be shared in Virtuale. The final written exam will consist of 2 open-ended questions (max 500 words per question). The exam duration is 90 minutes. 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 (max 500 words per question). The exam duration is 120 minutes. To prepare for the exam, students are expected 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.

Teaching tools

For exchange students: the admission to optional courses of the LM/Master IR is allowed to incoming students at Master level (or fourth year of their BA).

As for other undergraduate students, in order to attend and pass the exam with proficiency, they must demonstrate to the Professor having already acquired competences in the disciplines of political science and/or political economy in their respective Transcripts.

Students with DSA or temporary or permanent disabilities:

It is recommended to contact the responsible University office in good time (https://site.unibo.it/studenti-con-disabilita-e-dsa/it ): it will be their responsibility to propose any adaptations to the students concerned, which must however be submitted, with a 15-day notice, to the approval of the teacher, who will evaluate the opportunity also in relation to the educational objectives of the course.

Office hours

See the website of Manuela Moschella