It is widely acknowledged that, in order to understand capitalism in Italy and other Latin countries, one must also take into account the role of the Protestant Reformation and its “spirit”. Much less is known about the effects of the Counter-Reformation. In what ways did theological, social, ethical, and pastoral features of the Catholic response to Luther’s Reformation exert negative effects on the way business was understood in Italy and other Catholic countries? The reaction of the Church of Rome – which feared that what was happening in Germany could lead to its own downfall – introduced an exceedingly backward view of markets, profits, and interests. It erased the financial-economic ethics championed by Franciscan friars and encouraged a culture of recommendation linked to the cult of saints and the Madonna. In this ground-breaking book, the author analyses these “shadows”, but also lingers on the “lights”, in particular the birth of the “monti frumentari”, i.e., thousands of grain banks that Franciscans and bishops introduced as key tools for the improvement of rural conditions, especially in Southern Italy.

Luigino Bruni teaches Political Economy at LUMSA University (Libera Università Maria Santissima Assunta) in Rome.