The course examines the history of financial innovation and its consequences. It examines the evolution of trading practices, bills of exchange, government bonds, equities, banking activity, derivatives markets, and securitization. How do these evolve in particular state or national settings, how are the practices regulated, how do they relate to broader development? What happens as financial instruments are traded across state boundaries, and how does an international financial order evolve? What are the effects of international capital mobility? How is resulting conflict and instability managed, on both a national and international level?