How did arms-length financial markets emerge, cross borders, and eventually become responsible for regulating the international allocation of capital? Did they contribute to rapid economic growth since the 1800s, or did financial crises have significant costs for the real economy? What was the relation between business cycles and financial volatility? How did national authorities react to the rising trend of economic globalization? The focus of this course will lie on the interaction between financial markets, institutions, and the real economy over time. The role of the interwar and the Great Depression, in particular, in shaping the modern world order will also be considered. The material will join macroeconomic history to micro analysis of financial markets and policy.