ECO0426 - MOD. 2: EVOLUTION OF THE FINANCIAL SYSTEM AND BEHAVIORAL ECONOMICS

This module is composed by two parts.
Part One: Behavioral finance is a branch of behavioral economics that helps us: i) understand the underlying reasons behind financial decisions, ii) identify and correct errors in those decisions, iii) optimize the management of savings and investments, and iv) gain a better understanding of market dynamics. In short, behavioral finance offers a more realistic perspective on financial decision-making, taking into account the complexity of human behavior and the psychological factors that influence it. The main goal of this part is to develop knowledge in the fields of behavioral finance and market efficiency.
Part Two: This part traces the historical evolution of finance, banking institutions, and financial markets from the Middle Ages to the present, with particular attention to the economic, political, and institutional transformations that have accompanied this development. Key stages include the so-called “commercial revolution,” the age of Mercantilism, the financing of English industrialization, the emergence of modern financial systems in the nineteenth century, and the processes of regulation and deregulation in the twentieth century. The seconda part concludes with a focus on contemporary financial crises, from the 2008 crisis to the more recent instabilities in the global system. The approach integrates institutional, technical, and political perspectives, emphasizing the interactions between the state, markets, and private actors, and offering a long-term view of the relationship between finance and economic development.