Exploring Beauty and Money

On our first day in Florence, we met at 9:00 am for a guided tour of the town and its history. We marveled at the Duomo, strolled over the Ponte Vecchio and arrived at an impressively expansive mansion owned by a 15^th century banking family. The Medici family was known for their political power and wealth which was made evident to us as we exited the back of the mansion and entered the garden. Not only does the Medici family’s residence tower above street shops and vendors, but their garden includes a spectacular view of the city. We weaved through the ins and outs of the garden that led us to other breathtaking views while discussing the Medicis and their path to success.

Our article for that night explained that there were many 15^th century bankers, but the Medicis did a few things that other bankers did not. They were able to pool resources with family, invest in manufacturing companies and participate in the foreign exchange market to further their political and economic power. The article also mentioned that although the Medici family had so much power, their bank was not much farther ahead. Banking in the 15^th century did not allow one bank to retain all of the power because there were a lot of small firms with a limit on what they could generate. Additionally, most of these banks were loose and unfocused, making it difficult to employ economic policies.

We also had the opportunity to visit the Beauty and Money exhibit that was temporarily open in Florence. The museum partly focused on the Medicis and their involvement in the foreign exchange market. In that time, lending with interest had become known as “usury” so the Medici family exchanged currency with other countries in order to gain profit. They would convert their money to the other country’s currency, and then that country would convert it back to the Florin. This is one of the ways that the Medici family escaped trouble due to usury – and what led them to become one of the most powerful families in Florence.