This graduate seminar for Ph.D. students examines the interaction between capitalism and democracy. First, it examines the major theories of the interaction between politics and markets. Then it focuses in more detail on how the economy affects politics, and how politics—in particular, political institutions-- shapes economic outcomes. It explores the impact of global markets on national politics. It looks at both developed and developing countries, asking how development is affected by politics. The relative significance of domestic and international economic pressures and political institutions is also a theme.