EU469 Half Unit
The Political Economy of Finance in Europe
This information is for the 2025/26 session.
Course Convenor
Benjamin Braun
Availability
This course is available on the MSc in European and International Politics and Policy, MSc in European and International Politics and Policy (LSE and Bocconi), MSc in European and International Politics and Policy (LSE and Sciences Po), MSc in Political Economy of Europe in the World, MSc in Political Economy of Europe in the World (LSE and Fudan) and MSc in Political Economy of Europe in the World (LSE and Sciences Po). This course is available with permission as an outside option to students on other programmes where regulations permit. This course uses controlled access as part of the course selection process.
To apply for a place, ALL students should submit a statement via LSE for You outlining your specific reasons for applying, how it will benefit your academic/career goals, and how you meet any necessary pre-requisites (maximum 200 words).
This course has a limited number of places (it is controlled access) and demand is typically very high. Priority is given to students from the European Institute, so students from outside this department may not get a place.
Requisites
Additional requisites:
A basic understanding of economics and economic terms is highly recommended.
Course content
Politics and policymaking in Europe happen in the context of a global monetary and financial order. This course teaches students a political economy framework to understand and analyse this order, and the privileges and constraints it imposes on financial, non-financial, and state actors in Europe. The introductory segment of the course examines the broad contours of the historical evolution of finance since the late 19th century: The first financial globalisation in the shadow of European colonial expansion; the period of financial de-globalisation following World War II; and the liberalisation period that began in the 1970s. The second part focuses on the key actors (such as institutional capital pools) and the key assets (such as sovereign bonds) in Europe’s contemporary financial system. In order to be able to map the relationships between financial and non-financial actors, students learn how to access, process, and visualise financial data. The third part of the course brings this understanding of finance to bear on political challenges in Europe. What role does finance play in old-age provision? Can governments secure policy space in a world of global capital mobility? By the end of the course, students will have acquired the tools to analyse a broad range of political economy questions through a financial lens.
Teaching
15 hours of seminars and 10 hours of lectures in the Winter Term.
1.5 hours of seminars in the Spring Term.
This course has a reading week in Week 6 of Winter Term.
A review session will be held at the start of the Spring Term to prepare for the e-exam.
Formative assessment
Report
Students must write up a data report in the AT.
- Report parameters: 800 words plus data visualizations.
- Data exercises relate to the topic of the respective week.
- We will mainly work with official data from the financial accounts or the balance of payments, or with important researcher-assembled datasets.
- Example data exercise: “We have learned about the structure of, and access options for, balance of payments data. Select two countries, explain why their international investment positions (IIPs) are interesting to compare, and then use balance of payments data to describe the composition and historical evolution of these countries’ foreign assets and liabilities.”
- Students select a data exercise from a list and submit their reports, in the form of a .pdf file, via Moodle.
- In class, students present and discuss their results in groups.
- Instruction will focus on data download, processing, and visualization in R, but the assignment can be completed using any software, including Excel.
Indicative reading
- Abdelal, Ravi (2007). Capital rules. The construction of global finance. Cambridge, M and London, England: Harvard University Press
- Ban, C., & Bohle, D. (2021). Definancialization, financial repression and policy continuity in East-Central Europe. Review of International Political Economy, 28(4), 874–897.
- Barta, Z., & Johnston, A. (2023). Rating Politics: Sovereign Credit Ratings and Democratic Choice in Prosperous Developed Countries. Oxford University Press.
- Braun, Benjamin & Koddenbrock, Kai (eds.) (2022). Capital Claims: Power and Global Finance. Routledge.
- Cordelli, C., & Levy, J. (2022). The Ethics of Global Capital Mobility. American Political Science Review, 116(2), 439–452.
- Gabor, D. (2023). The (European) derisking state. Stato e Mercato, 2023(1), 53–84.
- Reinhart, Carmen M., & Sbrancia, M. Belen (2015). Debt Liquidation. Economic Policy (April), 291-333.
Assessment
Exam (100%), duration: 120 Minutes in the Spring exam period
The summative assessment will take the form of an e-exam in the Spring Term. E-exams are assessments run under invigilated exam conditions on campus. Students will complete the assessment using software downloaded to their personal laptops.
Key facts
Department: European Institute
Course Study Period: Winter Term
Unit value: Half unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 49
Average class size 2024/25: 16
Controlled access 2024/25: NoCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Self-management
- Team working
- Problem solving
- Application of information skills
- Communication
- Application of numeracy skills