Legnano ( Italian pronunciation: [leɲˈɲaːno] ; Legnanese : Legnàn or Lignàn ) is a town and comune (municipality) in the province of Milan , about 20 kilometres (12 mi) from central Milan . With 60,259, it is the thirteenth-most populous township in Lombardy . Legnano is located in the Alto Milanese and is crossed by the Olona River.
163-505: The history of Legnano and its municipal area has been traced back to the 1st millennium BC via archaeological evidence. Already in remote times, in fact, the hills that line the Olona had proved to be habitable places. The town was established in 1261. Because of the historic victory of the Lombard League over Frederick Barbarossa at Legnano, it is the only town other than Rome named in
326-449: A currency crisis or balance of payments crisis . When a country fails to pay back its sovereign debt , this is called a sovereign default . While devaluation and default could both be voluntary decisions of the government, they are often perceived to be the involuntary results of a change in investor sentiment that leads to a sudden stop in capital inflows or a sudden increase in capital flight . Several currencies that formed part of
489-516: A necropolis in the east of the city. The necropolis contained coins , plates , cups , glasses , balsamari , mirrors , and iron utensils. Other tombs dating back to the same period were found in 1985 near the old town, while other archaeological excavations revealed late Roman objects. This kit consisted of pebbles , knives , razors and buckles . All these objects are on display in the Museo civico Guido Sutermeister . The first document received on
652-630: A 19th-century term for a dowry , is Lombard in origin. Excavations in the municipal area have at various times revealed Lombard items from the 7th century. Swords and a shield boss were found on the Corso Giuseppe Garibaldi in 1894, a tomb was found in an adjacent area in 1926, and in 1950–51 household items were found near the INA Gallery. Under the Carolingian Empire , the Legnano area
815-460: A bank suffers a sudden rush of withdrawals by depositors, this is called a bank run . Since banks lend out most of the cash they receive in deposits (see fractional-reserve banking ), it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run renders the bank insolvent, causing customers to lose their deposits, to the extent that they are not covered by deposit insurance. An event in which bank runs are widespread
978-420: A bubble is the presence of buyers who purchase an asset based solely on the expectation that they can later resell it at a higher price, rather than calculating the income it will generate in the future. If there is a bubble, there is also a risk of a crash in asset prices: market participants will go on buying only as long as they expect others to buy, and when many decide to sell the price will fall. However, it
1141-507: A challenge to the epistemic norms typically assumed within financial economics and all of empirical finance. The possibility of financial crises being beyond the predictive reach of causality is discussed further within Epistemology of finance . Leverage , which means borrowing to finance investments, is frequently cited as a contributor to financial crises. When a financial institution (or an individual) only invests its own money, it can, in
1304-533: A church dedicated to St. Ambrose, which was located on the same site as the modern one . From the presence of as many as five churches, it can be deduced that Legnano at that time was a rather active and industrious community. Since the Middle Ages, the village was rich in water mills. The oldest writing that has come down to us in which a milling plant on the Olona River is mentioned is from 1043; this mill, which
1467-517: A consistent feature of both economic (and other applied finance disciplines) is the obvious inability to predict and avert financial crises. This realization raises the question as to what is known and also capable of being known (i.e. the epistemology ) within economics and applied finance. It has been argued that the assumptions of unique, well-defined causal chains being present in economic thinking, models and data, could, in part, explain why financial crises are often inherent and unavoidable. When
1630-406: A defense against Hungarian raids and later to defend Leone da Perego Palace , the occasional seat of the archbishop of Milan. The Cotta Castle passed in 1014 to the family of the same name, who fortified it into a real castle and gave it its name; this manor was located on the area occupied by the modern Leone da Perego Palace, which was rebuilt at the end of the 19th century. The Cotta family
1793-472: A document dated October 23, 789 testifies, since the time of Frankish rule Legnano was divided into two parts: the larger and more important agglomeration located on the right bank of the Olona River and corresponding to the modern city center (the so-called Contrada Granda , in the dialect of Legnano) and a smaller village, Legnanello, on the left bank of the river. At that time the two communities, which had an independent existence, were in connection thanks to
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#17328528238121956-399: A few agents encourage others to buy too, not because the true value of the asset increases when many buy (which is called "strategic complementarity"), but because investors come to believe the true asset value is high when they observe others buying. In "herding" models, it is assumed that investors are fully rational, but only have partial information about the economy. In these models, when
2119-445: A few investors buy some type of asset, this reveals that they have some positive information about that asset, which increases the rational incentive of others to buy the asset too. Even though this is a fully rational decision, it may sometimes lead to mistakenly high asset values (implying, eventually, a crash) since the first investors may, by chance, have been mistaken. Herding models, based on Complexity Science , indicate that it
2282-404: A financial crisis. To facilitate his analysis, Minsky defines three approaches that financing firms may choose, according to their tolerance of risk. They are hedge finance, speculative finance, and Ponzi finance. Ponzi finance leads to the most fragility. Financial fragility levels move together with the business cycle . After a recession , firms have lost much financing and choose only hedge,
2445-475: A fixed exchange rate may be stable for a long period of time, but will collapse suddenly in an avalanche of currency sales in response to a sufficient deterioration of government finances or underlying economic conditions. According to some theories, positive feedback implies that the economy can have more than one equilibrium . There may be an equilibrium in which market participants invest heavily in asset markets because they expect assets to be valuable. This
2608-540: A graveyard. The coins dated these finds to the reigns of Augustus and Caligula , or the 1st centuries BC and AD. Another dig in this same place in 1997 discovered goods from the 2nd and 4th centuries AD. Another 36 graves were discovered along the Via Micca that consisted to more of the same finds, albeit from the 1st and 2nd centuries AD. More tombs, from the reigns of Licinius and Constantine , were discovered along with their myriad grave goods. Other notable finds from
2771-636: A lack of humus and the presence of dry and stony soil. The largest plant life in the area to be found were Calluna shrubs, known locally as brugo ; this is the origin of Brughiera [ it ] , the name for the local moorland. With the arrival of humans , the soil was made fertile serviceable by the labor of farmers and the digging of irrigation channels such as acequia . Following these alterations, cultivated fields and forests spread over Legnano. These forests comprised plane , ash , common oak , hornbeam , chestnut , common hazel , poplar , elm , maple , and alder . The toponymy of
2934-405: A large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics , and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and the bursting of other financial bubbles , currency crises , and sovereign defaults . Financial crises directly result in
3097-411: A loss of paper wealth but do not necessarily result in significant changes in the real economy (for example, the crisis resulting from the famous tulip mania bubble in the 17th century). Many economists have offered theories about how financial crises develop and how they could be prevented. There is little consensus and financial crises continue to occur from time to time. It is apparent however that
3260-614: A manual of good table manners. The first verse of that work reads: [...] Bonvesin Dra Riva who is in Legnanọ [...] With this verse, Legnano makes its debut in Italian literature . Regarding Legnano, the poet wrote: [...] Among all the cities of Lombardy, it is praised as the rose or the lily among flowers, as the cedar in Lebanon, as the lion among quadrupeds, as the eagle among birds, so as to look like
3423-515: A natural branch of the Olona, the Olonella. Outlining a wide perimeter, the moat flowed back into the main course of the river between modern-day Corridoni and Ratti streets. Within this first defense structure, there was a wall that ran, for a stretch, parallel to the moat. Remains of these fortifications and the Cotta castle were found during two excavation campaigns that took place in the mid-1950s between
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#17328528238123586-701: A risk of sovereign default due to fluctuations in exchange rates. Many analyses of financial crises emphasize the role of investment mistakes caused by lack of knowledge or the imperfections of human reasoning. Behavioural finance studies errors in economic and quantitative reasoning. Psychologist Torbjorn K A Eliazon has also analyzed failures of economic reasoning in his concept of 'œcopathy'. Historians, notably Charles P. Kindleberger , have pointed out that crises often follow soon after major financial or technical innovations that present investors with new types of financial opportunities, which he called "displacements" of investors' expectations. Early examples include
3749-411: A situation when the participants in an exchange market come to recognize that a pegged exchange rate is about to fail, causing speculation against the peg that hastens the failure and forces a devaluation . A speculative bubble (also called a financial bubble or an economic bubble) exists in the event of large, sustained overpricing of some class of assets. One factor that frequently contributes to
3912-504: A small group of houses gathered around the square, all enclosed by defensive walls and a floodable moat. The shape of the town center of early medieval Legnano was still recognizable from the outline of the city drawn on the map of the Theresian Cadastre, which was made in 1722, while the shape of part of the walls can still be identified in the 21st century by following the route of modern streets Palestro, Giulini and Corridoni. As
4075-428: A small profit could be made with little or no capital. However, when interest rates changed and the incentive for the flow was removed or reversed sudden changes in capital flows could occur. The subjects of investment might be starved of cash possibly becoming insolvent and creating a credit crunch and the loaning banks would be left with defaulting investors leading to a banking crisis. As Charles Read has pointed out,
4238-435: A vase that can be traced back to Remedello's culture. They were born between 1926 and 1928 near the border between Castellanza and Legnano, dating from between 34th century BC and 22nd century BC. Bronzes dating back to the 4th century BC and 1st century BC (linked to La Tène culture ) have been found from an archaeological site near the strada statale del Sempione . The ancient vicus of Legnanum , which belonged to
4401-417: A weighted average of monthly percentage depreciations in the exchange rate and monthly percentage declines in exchange reserves exceeds its mean by more than three standard deviations. Frankel and Rose (1996) define a currency crisis as a nominal depreciation of a currency of at least 25% but it is also defined as at least a 10% increase in the rate of depreciation. In general, a currency crisis can be defined as
4564-491: Is Torre Colombera , which is now located between corso Garibaldi and via Del Gigante , near the Church of San Domenico , embedded in a building over the street. In 1549 the population, decimated by the plague epidemics of 1529 and of 1540, was 576 inhabitants, spread to 184 families. Already in these centuries the agriculture was very diverse. The main crops were cereals ( millet and wheat ), grapevine and mulberry , which
4727-605: Is based on the work of Thomas Tooke , Thomas Attwood , Henry Thornton , William Jevons and a number of bankers opposed to the Bank Charter Act 1844 . Starting at a time when short-term interest rates are low, frustration builds up among investors who search for a better yield in countries and locations with higher rates, leading to increased capital flows to countries with higher rates. Internally, short-term rates rise above long-term rates causing failures where borrowing at short term rates has been used to invest long-term where
4890-520: Is called a recession . An especially prolonged or severe recession may be called a depression , while a long period of slow but not necessarily negative growth is sometimes called economic stagnation . Some economists argue that many recessions have been caused in large part by financial crises. One important example is the Great Depression , which was preceded in many countries by bank runs and stock market crashes. The subprime mortgage crisis and
5053-565: Is called a systemic banking crisis or banking panic . Examples of bank runs include the run on the Bank of the United States in 1931 and the run on Northern Rock in 2007. Banking crises generally occur after periods of risky lending and resulting loan defaults. A currency crisis, also called a devaluation crisis, is normally considered as part of a financial crisis. Kaminsky et al. (1998), for instance, define currency crises as occurring when
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5216-409: Is difficult to determine precisely where the battle was fought. According to the vague information contained in the documents of the time, one can assume a place near the district of San Martino or in the vicinity of the Legnano district of Costa San Giorgio, and thus on territory now also belonging to the municipality of San Giorgio su Legnano . The choice to seek the clash with Barbarossa in Legnano
5379-477: Is difficult to predict whether an asset's price actually equals its fundamental value, so it is hard to detect bubbles reliably. Some economists insist that bubbles never or almost never occur. Well-known examples of bubbles (or purported bubbles) and crashes in stock prices and other asset prices include the 17th century Dutch tulip mania , the 18th century South Sea Bubble , the Wall Street Crash of 1929 ,
5542-577: Is from 800 years after the synthesis of the Remedello fragment, attributed to the Canegrate culture . Investigatory excavations found some 200 tombs, dated to the 13th century BC, and other finds that showed development until the Iron Age . Having been discovered in nearby Canegrate , these finds are definite evidence of prehistoric peoples in the area of present-day Legnano. In the 1980s, dwellings dated from
5705-410: Is from the period of Frankish rule that the town centers flourished again after the barbarian invasions; Legnano also followed this trend, experiencing a phase of economic growth also thanks to the resumption of trade, which once again took advantage of the ancient Roman road bordering the Olona. However, the first mention of the main village of Legnano is linked to the capture of Arialdo , leader of
5868-452: Is in Zone E with a rating of 2451 GR/G. Due to its location in the upper Po Valley , Legnano has a Continental climate with cold winters characterized by many days of snowfall and fog. Summers are hot humid, and moderately wet; temperatures can exceed 30 °C (86 °F) and humidity 80%. That humidity persists for the entire year because of precipitation brought on by cyclones originating in
6031-498: Is making sure institutions have sufficient assets to meet their contractual obligations, through reserve requirements , capital requirements , and other limits on leverage . Some financial crises have been blamed on insufficient regulation, and have led to changes in regulation in order to avoid a repeat. For example, the former Managing Director of the International Monetary Fund , Dominique Strauss-Kahn , has blamed
6194-439: Is older than that of the surrounding municipalities. "Legnano" could have originated as a predial adjective , formed from the name of the most prominent landowner in the area. In Legnano's case, this landowner's name could have been Lemennius or Limenius , to which was adjoined the suffix - anum . This land ownership was more extensive than the modern comune of Legnano having a surface corresponding to his modern urban area,
6357-501: Is scarce, potentially aggravating a financial crisis. International regulatory convergence has been interpreted in terms of regulatory herding, deepening market herding (discussed above) and so increasing systemic risk. From this perspective, maintaining diverse regulatory regimes would be a safeguard. Fraud has played a role in the collapse of some financial institutions, when companies have attracted depositors with misleading claims about their investment strategies, or have embezzled
6520-571: Is taxed by government and returned to the mass of people in the form of welfare, family benefits and health and education spending; and secondly, the proportion of the population who are workers rather than investors/business owners. Given the extraordinary capital expenditure required to enter modern economic sectors like airline transport, the military industry, or chemical production, these sectors are extremely difficult for new businesses to enter and are being concentrated in fewer and fewer hands. Empirical and econometric research continues especially in
6683-653: Is the glaciation in northern Italy during the Quaternary period. It was during this period that the fertile alluvial plain of the Po Valley was formed by glaciers and later the rivers of the Alps and Prealps . In the Legnano area, the Olona river was the executor of this later sedimentary process. The result of this process in Legano was a moorland characterized by poor fertility due to
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6846-535: Is the basis of the breeding of silkworms . In addition to cereal farming, the wood economy was also based on livestock farming and crafts . The construction of the convents and most of the churches of Legnano, on the other hand, dates back to the Counter-Reformation : the noble families of the time competed to win the favor of the Milanese archbishops by tying their name to works of charity or to works for
7009-461: Is the internal structure of the market, not external influences, which is primarily responsible for crashes. In "adaptive learning" or "adaptive expectations" models, investors are assumed to be imperfectly rational, basing their reasoning only on recent experience. In such models, if the price of a given asset rises for some period of time, investors may begin to believe that its price always rises, which increases their tendency to buy and thus drives
7172-407: Is the only town other than Rome named in the Italian national anthem ("[...] Dall'Alpi a Sicilia dovunque è Legnano [...]", en. "From the Alps to Sicily , Legnano is everywhere"). Every year the people of Legnano commemorate the battle with Palio di Legnano . In the institutional sphere, on 29 May, the date of the battle of Legnano, it was chosen as the regional holiday of Lombardy. Although
7335-653: Is the type of argument underlying Diamond and Dybvig's model of bank runs , in which savers withdraw their assets from the bank because they expect others to withdraw too. Likewise, in Obstfeld's model of currency crises , when economic conditions are neither too bad nor too good, there are two possible outcomes: speculators may or may not decide to attack the currency depending on what they expect other speculators to do. A variety of models have been developed in which asset values may spiral excessively up or down as investors learn from each other. In these models, asset purchases by
7498-411: Is −4 °C (25 °F) and that of the hottest month, July, is 28 °C (82 °F). Rainfall averages at 1,000-millimetre (39 in) and has peaks in spring and autumn, countered by a relative drop during the winter. The basic climatic data of Legnano are: The toponymy of the name "Legnano" is uncertain, as the early settlement was known by several names, but it is obvious that Legnano's name
7661-533: The regio XI Transpadana , one of Italy's Augustean regions , was connected to the surrounding areas through important communication routes, the most important of which was a Roman road built in the 1st century AD, the Via Severiana Augusta , which skirted the Olona River at the modern strada statale del Sempione , which connected ancient Mediolanum (the modern Milano ) to Lake Maggiore . The most important Roman-era finds were discovered in 1925 in
7824-604: The European Exchange Rate Mechanism suffered crises in 1992–93 and were forced to devalue or withdraw from the mechanism. Another round of currency crises took place in Asia in 1997–98 . Many Latin American countries defaulted on their debt in the early 1980s. The 1998 Russian financial crisis resulted in a devaluation of the ruble and default on Russian government bonds. Negative GDP growth lasting two or more quarters
7987-503: The Golasecca culture . More Golasecca finds, this time household items, were discovered in 1925 and 1937 and were dated to the 5th and 4th centuries BC. In the course of these excavations, two more necropoli were unearthed that contained yet more household goods as well as funerary urns . An excavation along the State Road 33 Sempione [ it ] uncovered two bronze items of
8150-461: The Italian national anthem ("[...] Dall'Alpi a Sicilia dovunque è Legnano [...]", en. "From the Alps to Sicily , Legnano is everywhere"). Every year the people of Legnano commemorate the battle with Palio di Legnano . In the institutional sphere, on 29 May, the date of the battle of Legnano, it was chosen as the regional holiday of Lombardy. Located in the south of the Varese Prealps along
8313-504: The Japanese property bubble of the 1980s, and the crash of the United States housing bubble during 2006–2008. The 2000s sparked a real estate bubble where housing prices were increasing significantly as an asset good. When a country that maintains a fixed exchange rate is suddenly forced to devalue its currency due to accruing an unsustainable current account deficit, this is called
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#17328528238128476-505: The Late Middle Ages , began to develop with an elongated shape following the direction traced by a road that constituted, together with the already mentioned road built by the ancient Romans that passed through Legnanello, the main system of communication with the surrounding area. The road passing through the main settlement, which also followed the course of the Olona and corresponds to modern-day Corso Magenta and Corso Garibaldi, crossed
8639-647: The Lombard League , whose symbol was the Carroccio . The battle ended the fifth and final descent into Italy of Emperor Federico Barbarossa, who after the defeat tried to resolve the Italian question by attempting the diplomatic approach. This resulted a few years later in the peace of Constance (25 June 1183), with which the Emperor recognized the Lombard League by granting administrative, political and judicial concessions to
8802-701: The Mediterranean or in the Russian north . That precipitation itself remains in the Po Valley because of its poor ventilation. Data from the Milan Malpensa meteorological station [ it ] indicates that, based on the more than thirty years (1961–1990) of reference accumulated by the World Meteorological Organization , that the average temperature of the Milan area the coldest month, January,
8965-633: The Metropolitan City of Milan in the Alto Milanese , has a recorded history from the first mention of the Legnarello district [ it ] to the present day. During the Middle Ages , Legnano was the site of an important battle wherein the Lombard League defeated Frederick Barbarossa . Because of that battle, Legnano is the only city other than Rome , capital of Italy, to be mentioned in
9128-464: The Middle East . Bonvesin da la Riva , the greatest poet and writer of Lombardy in the 13th century and one of the exponent more prominent of the didactic poetic movement of northern Italy, lived in the city until 1288. The literary man described Legnano with these verses: [...] Among all the cities of Lombardy is lauded as the rose or lily among the flowers, such as cedar in Lebanon, as the lion among
9291-562: The Napoleonic era , a work was enhanced that would be decisive, together with the artisanal activities above, for the birth of industries. The government improved the strada statale del Sempione road that connected Milan with Paris on the Rho – Legnano – Gallarate – Arona – Domodossola – Brig crossing the Alps . Nowadays in Legnano the strada statale del Sempione still exists. This important communication route also greatly contributed to
9454-401: The Olona valley [ it ] , the comune of Legnano has an area of 12.72 square kilometers (4.91 sq mi), has an elevation of 192–227 meters (630–745 ft) above sea level , and is seismically classified [ it ] in Zone 4 (Irrelevant seismology). The valley soil is mainly composed of sand , gravel , and clay . A thin layer of humus also used to coat
9617-590: The Pataria , which took place inside the Cotta Castle . On the Historia Mediolanensis written by Landulf Senior in the 11th century, which deals with the history of Milan in the Middle Ages, it can be read that Arialdo was captured: in the vicinity of Legnano Latin : [...] iuxta locum Legnani [...] Early medieval Legnano was dominated by a fortified palace that had served the people of Legnano as
9780-735: The Sant'Erasmo hospice in Legnano. Legnano was the fourth stop from the Simplon Pass and the last before Milan; from the Milanese capital, pilgrims then headed to Rome or Venice , where they could embark for the Holy Land . The Sant'Erasmo hospice thus functioned as a place of shelter, prayer and care for the sick, as well as a hospital and orphanage for the local inhabitants. As recorded in two lists of churches compiled in 1304 and 1389, there were, in addition to San Salvatore, other buildings dedicated to religious worship in Legnano; specifically, there were
9943-507: The South Sea Bubble and Mississippi Bubble of 1720, which occurred when the notion of investment in shares of company stock was itself new and unfamiliar, and the Crash of 1929 , which followed the introduction of new electrical and transportation technologies. More recently, many financial crises followed changes in the investment environment brought about by financial deregulation , and
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#173285282381210106-506: The Via Severiana Augusta . Because of this strategic function, Legnano, starting in the 11th century, began to bind itself more and more with Milan even from an economic and military point of view, although it formally belonged to Seprio. Legnano and the other counties that gravitated around the Milanese capital also supplied Milan with foodstuffs. Milan also influenced the Legnano dialect, which began to differentiate itself from
10269-716: The Würm glaciation , discovered in the San Giorgio area and now displayed at the Guido Sutermeister Civic Museum [ it ] in Legnano. The oldest man-made find was made by Guido Sutermeister during excavations between 1926 and 1928 in the Legnanese , alongside miscellaneous Roman finds. The item, a fragment of a bell-shaped vase (pictured), made by the Remedello culture between 3400 BC to 2200 BC. The location of
10432-420: The church of San Martino , the church of Sant'Ambrogio , and especially the church of San Salvatore. Legnano's main cemetery was thus located in the modern Piazza San Magno, and it continued to be used even after the basilica was built. Later a large underground room was built where the dead were interred, known as "the big pit" and which was used until 1808. The main urban agglomeration of Legnano, even during
10595-695: The financial crisis of 2007–2008 on 'regulatory failure to guard against excessive risk-taking in the financial system, especially in the US'. Likewise, the New York Times singled out the deregulation of credit default swaps as a cause of the crisis. However, excessive regulation has also been cited as a possible cause of financial crises. In particular, the Basel II Accord has been criticized for requiring banks to increase their capital when risks rise, which might cause them to decrease lending precisely when capital
10758-703: The late antiquity include more coins and some amphorae from the 4th century AD. With the Migration Period the remaining territories of the Western Roman Empire experienced socio-economic implosion. Among the Germanic peoples migrating into the Roman Empire were the Lombards , who came to dominate Cisalpine Gaul . Their influence, and especially that of their dialect , was to be lasting; legnanese schirpa ,
10921-582: The monastery of Sant'Ambrogio in Milan. This written testimony, which is dated October 23, 789, is included in the Lombard Diplomatic Codex under number LIV. Within it one can read: [...] with our properties in Legnanello [...] ( Latin : [...] curtem proprietatis nostre in Leunianello [...] ) It seems that the ward already existed in 687, when the religious celebration of Candlemas began, which
11084-558: The national anthem . Industry has had significant impact on Legnano's history and the municipality remains one of the most developed and industrialized in Italy. From the Paleozoic to the Cenozoic Eras, the area to be Legnano was below sea level . The primordial ocean blanketed the municipal area in many different layers of sediment. The largest factor in the creation of Legnano's geography
11247-411: The stock market (" margin buying ") became increasingly common prior to the Wall Street Crash of 1929 . Another factor believed to contribute to financial crises is asset-liability mismatch , a situation in which the risks associated with an institution's debts and assets are not appropriately aligned. For example, commercial banks offer deposit accounts that can be withdrawn at any time, and they use
11410-576: The vicus . Among the items found, and now displayed at the Sutermeister Civic Museum, are portions of walls, terracotta piping, tiles, and bricks, necropoli, and household ceramic, glass, and metal objects, and currency . The most important finds were made in 1925–26 between the Via Venegoni and the Via Firenze. These are coins, plates and cups, unguentaria , mirrors, and iron tools in
11573-422: The world systems theory and in the debate about Nikolai Kondratiev and the so-called 50-years Kondratiev waves . Major figures of world systems theory, like Andre Gunder Frank and Immanuel Wallerstein , consistently warned about the crash that the world economy is now facing. World systems scholars and Kondratiev cycle researchers always implied that Washington Consensus oriented economists never understood
11736-403: The " Legnanese ". This would confirm the complete Latinization of the Legnano area around 1st century AD ; in other places where Celtic influence was still substantial, the suffix -acum would have been used. Thus, the ancient name of Legnano became Lemoniano , Leminiano or Lemegniano , later Limnianum and finally Legnanum . Another theory advances that one of the names that Legnano
11899-423: The 12th to the 10th centuries BC were discovered between Legnano and Castellanza. Archaeologists conjectured that these dwellings had stone foundations, wooden walls, and roofs made of several layers of dried leaves. Various household items were also discovered in these dwellings. Two bronze spearheads dated to the 9th and 8th centuries BC were discovered in 1892 and 1895 near Legnano. They have been attributed to
12062-410: The 15th century Legnano was dominated by several noble families. Despite the presence of these lineages, Legnano was never a true lordship to the point that the town of Legnano, unlike many neighboring communities, was never the subject of enfeoffment . Financial crisis Heterodox A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose
12225-488: The 2008 subprime mortgage crisis ; government officials stated on 23 September 2008 that the FBI was looking into possible fraud by mortgage financing companies Fannie Mae and Freddie Mac , Lehman Brothers , and insurer American International Group . Likewise it has been argued that many financial companies failed in the recent crisis because their managers failed to carry out their fiduciary duties. Contagion refers to
12388-574: The Busto dialect. Due to the frequent contacts between the two cities, the Milanese dialect began to "contaminate" the language spoken in Legnano. Despite this trend, the Legnano dialect continued to retain a certain diversity from the Milanese dialect over the centuries. Legnano's connection with Milan exacerbated friction with Busto Arsizio , which instead continued to be linked to the County of Seprio. The latter
12551-650: The Celtic La Tène culture dated to between the 4th and 1st centuries BC. Other digs, even on small-scale, have unearthed numerous items corresponding to this culture throughout the Alto Milanese . No finds connected to either the Etruscans or Adriatic Veneti have been made. Strong Celtic influence is extent even in finds dated to the period after the Roman conquest of the Po Valley [ it ] , only disappearing in
12714-601: The Lampugnani, Vismara, Visconti , Crivelli, Maino and Caimi. During the 15th century Legnano was enriched with many noble dwellings, which built to the Visconti Castle of Legnano, that replaced in the role of fortification of the borgo the already mentioned castle of the Cotta , and the Palazzo Leone da Perego, that was built by the eponymous archbishop. The only civil built in the 15th century that has not been demolished
12877-481: The Legnano vicus was inhabited by poor citizenry. This is contrasted by the finds in nearby Parabiago , especially the Parabiago Plate . The Legnano vicus findings also suggested an agricultural character, particularly farming, husbandry, and weaving. The finds date from the 1st century BC to the 4th century AD suggest that the vicus was continuously inhabited. Legnano experienced socio-economic decline with
13040-693: The Middle Ages Legnano was the scene of an important battle. In several military campaigns prior to the famous clash, the German emperor Frederick I (known as "Barbarossa") aspired to assert his dominance over the communes of northern Italy . The latter overcame their rivalries by uniting in the Lombard League , i.e., a military alliance chaired by Pope Alexander III , which defeated the Holy Roman Emperor 's army near Legnano (May 29, 1176) ending Barbarossa's hegemonic dreams in northern Italy. Today it
13203-459: The Olona. Archaeological evidence of Roman activity in Legnano is plentiful, beginning in the 2nd century BC with the Roman conquest of the region. From the amount and type of goods found in the middle Olona valley, it has been assumed that it was part of an important route of communication. Numerous excavations in the 19th and 20th centuries found numerous Roman furnishings distributed evenly through
13366-467: The ability to elect consuls. I Previously, the government of the cities was held by the bishop, the nobles and the upper middle class. This led to the emergence in Milan of a situation of political instability, and thus Leone da Perego, who was among the leading proponents of the return of archiepiscopal supremacy over the city's government, was forced to leave the Milanese city on several occasions. The archbishop often chose Legnano as his home because of
13529-415: The actual risks in the economy and stop giving credit so easily. Refinancing becomes impossible for many, and more firms default. If no new money comes into the economy to allow the refinancing process, a real economic crisis begins. During the recession, firms start to hedge again, and the cycle is closed. The Banking School theory of crises describes a continuous cycle driven by varying interest rates. It
13692-500: The adjacent Palazzo Visconti to the Cotta Castle and, after the demolition of the latter, to a building located on the other side of modern-day Corso Magenta. To the north was presumably located a "Porta di Sopra" of which, however, no tangible evidence remains, since it was likely demolished in earlier times. In the Middle Ages, pilgrims traveling along one of the Roman roads to Milan, the so-called Via Romana, had among their stops
13855-544: The area from before the Roman period were discovered in the slopes of the Olona valley. Excavations in this area uncovered numerous necropoli , usually bedecked with everyday items as grave goods . These early inhabitants are thought to have come from the Lagozza di Besnate [ it ] site or from other stilt house cultures on the Varese lakes. The oldest finds in general in the municipal area are aurochs bones dated to
14018-511: The battle against Barbarossa. The Legnano community approved, in 1261, its first statutes, a deliberation that gave birth, formally, to the municipality of Legnano. From 1270 Bonvesin de la Riva , the greatest Lombard poet and writer of the 13th century, lived in Legnano. Born in Milan, he lived at the convent of Santa Caterina in the Contrada Sant'Erasmo , where he wrote one of his best-known works, De quinquaginta curialitatibus ad mensam ,
14181-427: The benefit of the community. The hallmark of the 18th and 19th centuries was the construction of many watermills along the Olona . In the period of maximum expansion of the activity of watermills, in Legnano, seventeen mills could be counted, exploiting the driving force of the Olona river. The last seven in Legnano were demolished between the 19th and 20th centuries to be replaced by more modern plants, which exploited
14344-468: The bursting of other real estate bubbles around the world also led to recession in the U.S. and a number of other countries in late 2008 and 2009. Some economists argue that financial crises are caused by recessions instead of the other way around, and that even where a financial crisis is the initial shock that sets off a recession, other factors may be more important in prolonging the recession. In particular, Milton Friedman and Anna Schwartz argued that
14507-403: The canals and the disclaimed by the peasants. The latter were necessary to reach, for irrigation purposes, the land farthest from the Olona. The extraction of water from the river, and more generally the activities related to the exploitation of the Olona, were regulated, over the centuries, by contracts and regulations. The urban fabric of Legnano has developed around the old town ; its growth
14670-456: The church of Sant'Agnese (which stood in the area occupied by the headquarters of the modern Bank of Legnano and was demolished during the period of construction of the basilica of San Magno), the church of San Martino (which was erected in the same place as the modern one ) and the church of Santa Maria del Priorato, to which the convent of the Humiliati was attached. The 1389 list also includes
14833-628: The circular relationships often evident in social systems between cause and effect – and relates to the property of self-referencing in financial markets. George Soros has been a proponent of the reflexivity paradigm surrounding financial crises. Similarly, John Maynard Keynes compared financial markets to a beauty contest game in which each participant tries to predict which model other participants will consider most beautiful. Furthermore, in many cases, investors have incentives to coordinate their choices. For example, someone who thinks other investors want to heavily buy Japanese yen may expect
14996-413: The colors in the coat of arms of the municipality of Legnano are linked to a legend . In an unspecified historical period, in today's Piazza San Magno , a large Turkey oak . On the day of the patron saint san Magno , 5 November, a farmer began to contemplate the tree admiring its ability to withstand frost and snow. The farmer thus expressed a desire to be able to withstand the difficulties of life in
15159-416: The crash of the dot com bubble in 2001 arguably began with "irrational exuberance" about Internet technology. Unfamiliarity with recent technical and financial innovations may help explain how investors sometimes grossly overestimate asset values. Also, if the first investors in a new class of assets (for example, stock in "dot com" companies) profit from rising asset values as other investors learn about
15322-448: The cycle restarts from the beginning. Mathematical approaches to modeling financial crises have emphasized that there is often positive feedback between market participants' decisions (see strategic complementarity ). Positive feedback implies that there may be dramatic changes in asset values in response to small changes in economic fundamentals. For example, some models of currency crises (including that of Paul Krugman ) imply that
15485-413: The dangers and perils, which leading industrial nations will be facing and are now facing at the end of the long economic cycle which began after the oil crisis of 1973. Hyman Minsky has proposed a post-Keynesian explanation that is most applicable to a closed economy. He theorized that financial fragility is a typical feature of any capitalist economy . High fragility leads to a higher risk of
15648-595: The decades of the 20th century led to the birth of many brownfield sites that are recovering. The most important urban intervention, which was carried out at the beginning of the 21st century, was the recovery from the former Cotonificio Cantoni , an area of 110,000 square meters that was destined to residential and commercial area . In Legnano there is a historical subdivision into neighborhoods . The historic neighborhoods of Legnano are Mazzafame , Ponzella , Frati , Olmina , Canazza , Gabinella , Legnanello , Colli di Sant'Erasmo and Costa San Giorgio . The part of
15811-469: The discovery was a construction site for State Road 527 Bustese [ it ] , near the municipal border with Castellanza . Although the nature of the relationship between the peoples along the Olona and the Remedello culture are unknown, it has been assumed they had commercial links. In the area of Legnano are found no traces of the early Bronze Age ; there have been no finds made dated to between 2200 BC and 1400 BC. The next chronological find
15974-402: The driving force of the Olona river more efficiently. The low incomes that were provided by the agricultural and livestock economy of these centuries stimulated the peasants to integrate the use in the fields with other jobs, in which women also participated during the day. In the evening, the farmers became spinners and weavers of silk , wool and cotton , as well as dyers . During
16137-545: The economy. These theoretical ideas include the ' financial accelerator ', ' flight to quality ' and ' flight to liquidity ', and the Kiyotaki-Moore model . Some 'third generation' models of currency crises explore how currency crises and banking crises together can cause recessions. Austrian School economists Ludwig von Mises and Friedrich Hayek discussed the business cycle starting with Mises' Theory of Money and Credit , published in 1912. Recurrent major depressions in
16300-414: The erected INA Gallery and an adjacent area located a little further north toward Corso Garibaldi. In the early Middle Ages Legnano thus appeared as a fortified citadel formed by the church of San Salvatore , i.e., the religious building to which the Legnano community referred before the construction of the basilica of San Magno, the castle of the Cotta family, which was the seat of political power, and
16463-453: The farmer who asked to return man, thus chastising his pride. The tree and the lion, along with the white of the snow and the red blood of the rabbit, became the symbols of Legnano, and were included in the coat of arms and in the municipal skirt. On 15 August 1924, the municipality of Legnano was granted the title of city . The most ancient evidence of settlement in Legnano dates to the Remedello culture (21st–19th centuries BC). Later it
16626-408: The form of wages) than the value of the goods produced by those workers (i.e. the amount of money the products are sold for). This profit first goes towards covering the initial investment in the business. In the long-run, however, when one considers the combined economic activity of all successfully-operating business, it is clear that less money (in the form of wages) is being returned to the mass of
16789-473: The former Cantoni [ it ] and Dell'Acqua [ it ] cotton mills. These were built because the Olona was prone to damaging floods , but consequently made the Olona one of the most polluted rivers in Italy. The pollution of the river is gradually lessening, however, while the last damaging flood occurred on 13 September 1995, and the last in chronological order occurred in July 2014. For
16952-507: The funds cannot be liquidated quickly (a similar mechanism was implicated in the March 2023 failure of SVB Bank ). Internationally, arbitrage and the need to stop capital flows, which caused bullion drains in the gold standard of the nineteenth century and drains of foreign capital later, bring interest rates in the low-rate country up to equal those in the country which is the subject of investment. The capital flows reverse or cease suddenly causing
17115-516: The history of Legnano concerns the quartier of Legnanello . This act, which refers to a trade in land located in the small neighbour, is dated 23 October 789. Within this written testimony can be read: [...] curtem proprietatis nostre in Leunianello [...] This written testimony in English means "[...] with our properties in Legnanello [...]". It seems that Legnanello existed as early as 687, when
17278-442: The idea that financial crises may spread from one institution to another, as when a bank run spreads from a few banks to many others, or from one country to another, as when currency crises, sovereign defaults, or stock market crashes spread across countries. When the failure of one particular financial institution threatens the stability of many other institutions, this is called systemic risk . One widely cited example of contagion
17441-499: The initial economic decline associated with the crash of 1929 and the bank panics of the 1930s would not have turned into a prolonged depression if it had not been reinforced by monetary policy mistakes on the part of the Federal Reserve, a position supported by Ben Bernanke . It is often observed that successful investment requires each investor in a financial market to guess what other investors will do. Reflexivity refers to
17604-499: The innovation (in our example, as others learn about the potential of the Internet), then still more others may follow their example, driving the price even higher as they rush to buy in hopes of similar profits. If such " herd behaviour " causes prices to spiral up far above the true value of the assets, a crash may become inevitable. If for any reason the price briefly falls, so that investors realize that further gains are not assured, then
17767-402: The latter, although the beginning of the process that would lead the village to be closely linked to Milan also from an economic and military point of view dates from this period. The first document concerning Legnano was drawn up during Frankish rule and mentions the district of Legnanello. This documented deed refers to an exchange of land between Pietro I Oldrati, archbishop of Milan , and
17930-470: The main town and, after lapping the main village near the modern basilica of San Magno and Palazzo Malinverni , re-entered the Olona a little further downstream. The Olonella was later buried in the first part of the 20th century. Legnanello at the time consisted of a few houses that were located along the road parallel to the main course of the Olona known since Roman times (the modern Corso Sempione, popularly known, even earlier, as " strada magna "), while
18093-429: The main village consisted of a cluster of dwellings around a square (the modern Piazza San Magno). In the Middle Ages people began to bury the dead near churches. More precisely, nobles were interred within the perimeter of religious buildings, while the deceased of the general populace were buried in mass graves outside the churches. In the Middle Ages, the Legnano temples that were most affected by this phenomenon were
18256-506: The modern equivalent of this process involves the Carry Trade, see Carry (investment) . Some financial crises have little effect outside of the financial sector, like the Wall Street crash of 1987 , but other crises are believed to have played a role in decreasing growth in the rest of the economy. There are many theories why a financial crisis could have a recessionary effect on the rest of
18419-428: The money they lend. Therefore, they are ready to lend to firms without full guarantees of success. Lenders know that such firms will have problems repaying. Still, they believe these firms will refinance from elsewhere as their expected profits rise. This is Ponzi financing. In this way, the economy has taken on much risky credit. Now it is only a question of time before some big firm actually defaults. Lenders understand
18582-502: The most important hypotheses, the genesis of ancient Legnano, whose most likely name is Latinanium , dates back to before the birth of Christ , in Roman times . The origin of this coat of arms can be clearly traced back to a coat of arms reproduced on page 193 of the Stemmario Trivulziano . In this ancient volume it can be read that the coat of arms of Legnano is very similar to that of Stemmario Cremosano . The subject and
18745-571: The municipalities and officially ending his attempt to hegemonize Northern Italy. Already in the Middle Ages Legnano was not considered a village, but a borgo , a denomination reserved in Italy for comuni with a market and a fortification . These infrastructures generally stood in the most populous centers and also served the neighboring centers. During the Renaissance , Legnano was dominated by several noble families . The main ones were
18908-400: The name "Legnano" is uncertain, as the early settlement was known by several names, but it is obvious that Legnano's name is older than that of the surrounding municipalities. "Legnano" could have originated as a predial adjective, formed from the name of the most prominent landowner in the area. In Legnano's case, this landowner's name could have been Lemennius or Limenius, to which was adjoined
19071-489: The name for the region, Latinanium . Therefore, any suppositions linking the name of the city to the Celtic toponym Lemonianum ("place of the sacred grove") or the predial adjective Laenianum , referring to a potential landowner named Laenius are false. The very earliest settlers in the Legnano area lived at a distance from the Olona so that its frequent flooding would not impair them. The most important archaeological finds in
19234-453: The new rulers, from whom it took its name: thus was born the modern Visconti castle of Legnano . After its fortification, the Visconti castle acquired the role of defensive bulwark of the Milanese countryside, replacing the Cotta manor in that function. Legnano, retaining its strategic function until the 15th century, thus continued to be the scene of political events related to Milan even after
19397-528: The palace of the same name, Palazzo Leone da Perego , where he died on 14 October 1257. At first he was buried in the Church of Sant'Ambrogio , but then the body disappeared. In 1258, the community of Legnano approved its first statutes, a deliberation that formally gave birth to the municipality of modern Legnano. In April 1273, the Visconti Castle of Legnano hosted the royals Edward I of England and Eleanor of Castile on their way back from their trip to
19560-514: The political and cultural life of Legnano would originate. Among them were the Oldradi (or Oldrendi); the first mention of this family is found on a document dated 1173, where they sign themselves as da Legniano in such a way as to recall and remark their control over the village. From the Oldrendi descended the well-known 14th-century jurist Giovanni da Legnano , who later changed his surname and became
19723-410: The population (the workers) than is available to them to buy all of these goods being produced. Furthermore, the expansion of businesses in the process of competing for markets leads to an abundance of goods and a general fall in their prices, further exacerbating the tendency for the rate of profit to fall . The viability of this theory depends upon two main factors: firstly, the degree to which profit
19886-415: The population of Legnano quadrupled. Due to the need for water, the mussel industries born in the 19th century sprung up along the shores of the Olona. As a result, the new residential districts have occupied the free areas beyond the river valley. As a result of the growth of Legnano, the companies have built their locations more and more on the outskirts. Then, the various economic crises that followed in
20049-529: The presence of some bridges. The land between the two settlements, which was crossed by the Olonella and the main course of the Olona, was free and was known as "Braida arcivescovile" being owned by the Archdiocese of Milan; the Braida Arcivescovile remained free of buildings until the 20th century because it was often flooded by the waters of the river. The Olonella originated from the river just before
20212-497: The presence of the enemy in the surroundings was already known to both sides, they met suddenly without having time to plan any strategy . The Battle of Legnano was crucial in the long war waged by the Holy Roman German Empire to try to assert its power over the municipalities of northern Italy, who decided to put aside each other's rivalries by allied themselves in a military-led union symbolically by Pope Alexander III ,
20375-545: The price up further. Likewise, observing a few price decreases may give rise to a downward price spiral, so in models of this type, large fluctuations in asset prices may occur. Agent-based models of financial markets often assume investors act on the basis of adaptive learning or adaptive expectations. As the most recent and most damaging financial crisis event, the Global financial crisis, deserves special attention, as its causes, effects, response, and lessons are most applicable to
20538-402: The proceeds to make long-term loans to businesses and homeowners. The mismatch between the banks' short-term liabilities (its deposits) and its long-term assets (its loans) is seen as one of the reasons bank runs occur (when depositors panic and decide to withdraw their funds more quickly than the bank can get back the proceeds of its loans). Likewise, Bear Stearns failed in 2007–08 because it
20701-470: The progenitor of the family later called Legnani. Leone da Perego, bishop of Milan from 1241 to 1257, stayed in Legnano. He lived in the palace of the same name, where he died on October 14, 1257. At first he was buried in the church of Sant'Ambrogio, then the body disappeared. As a consequence of the Battle of Legnano, the medieval Lombard communes became enfranchised from imperial power and their people gained
20864-490: The quadrupeds, like the eagle among the birds, so as to appear as the sun among the celestial bodies, for the fertility of the soil and the availability of the necessities fundamental for the men [...] In the Middle Ages , the city was the location of the Battle of Legnano in which Emperor Frederick I was defeated by the Lombard League (1176). Because of the historic victory of the Lombard League over Frederick Barbarossa , it
21027-459: The reign of Emperor Augustus . The romanization of the Legnano area took place slowly, as the Empire allowed the locals to continue speaking their language, worship their own gods, and practice their culture. In Roman times, the inhabitants of the Legnano area were part of a vicus , as evidenced by abundant archaeological finds. Those discoveries were generally of poor quality, suggesting that
21190-502: The religious celebration of the Candlemas (the Candelora ) began, introduced by Pope Sergius I , who officiated every 2 February. The first mention of the main settlement of Legnano is related to the capture of Arialdo , head of the pataria , which took place inside the castle of the Cotta in Legnano, that was built in 10th century and demolished in 13th/14th century (this fortification
21353-519: The rest of the Roman Empire in its twilight years. With the arrival of Christianity , the inhabitants of the vicus began to bury rather than cremate their dead. With the arrival of the Romans, Legnano became permanently inhabited by humans. The Roman vicus belonged to Regio XI Transpadana [ it ] and sat upon the Mediolanum-Verbannus road [ it ] , which ran along
21516-660: The resulting income. Examples include Charles Ponzi 's scam in early 20th century Boston, the collapse of the MMM investment fund in Russia in 1994, the scams that led to the Albanian Lottery Uprising of 1997, and the collapse of Madoff Investment Securities in 2008. Many rogue traders that have caused large losses at financial institutions have been accused of acting fraudulently in order to hide their trades. Fraud in mortgage financing has also been cited as one possible cause of
21679-471: The safest. As the economy grows and expected profits rise, firms tend to believe that they can allow themselves to take on speculative financing. In this case, they know that profits will not cover all the interest all the time. Firms, however, believe that profits will rise and the loans will eventually be repaid without much trouble. More loans lead to more investment, and the economy grows further. Then lenders also start believing that they will get back all
21842-425: The same thing they expect others to do, then self-fulfilling prophecies may occur. For example, if investors expect the value of the yen to rise, this may cause its value to rise; if depositors expect a bank to fail this may cause it to fail. Therefore, financial crises are sometimes viewed as a vicious circle in which investors shun some institution or asset because they expect others to do so. Reflexivity poses
22005-434: The same way. At that moment, san Magno appeared, offering to satisfy man's desire by giving him the vigour, recklessness, and power of a lion. The saint ordered the farmer to kill a rabbit and advance on the snow-soaked ground, where the animal's blood had been shed. The farmer followed orders and then san Magno fulfilled his dream by turning him into a lion . After the prodigy, the saint suddenly disappeared without appeasing
22168-425: The spiral may go into reverse, with price decreases causing a rush of sales, reinforcing the decrease in prices. Governments have attempted to eliminate or mitigate financial crises by regulating the financial sector. One major goal of regulation is transparency : making institutions' financial situations publicly known by requiring regular reporting under standardized accounting procedures. Another goal of regulation
22331-487: The strategic importance of Legnano, the second mail station from Milan. In the 19th century the municipal administration of Legnano was governed by large landowners and members of the wealthiest bourgeoisie . She was often forced to intervene to dictate rules on agriculture, grazing and land protection, and to resolve heated disputes between farmers and millers , especially during lean Olona river periods. History of Legnano Legnano , an Italian municipality of
22494-456: The subject of investment to be starved of funds and the remaining investors (often those who are least knowledgeable) to be left with devalued assets. Bankruptcies, defaults and bank failures follow as rates are pushed high. After the crisis governments push short-term interest rates low again to diminish the cost of servicing government borrowing which has been used to overcome the crisis. Funds build up again looking for investment opportunities and
22657-415: The suffix - anum . This would confirm the complete Latinization of the Legnano area; in other places where Celtic influence was still substantial, the suffix -acum would have been used. Thus, Lemoniano , Leminiano or Lemegniano , later to become Limnianum and finally Legnanum . Another theory advances that one of the names that Legnano was known by in the Middle Ages , Ledegnanum , derives from
22820-457: The sun among celestial bodies, because of the fertility of the soil and the availability of the goods needed by the people [...] In Legnano Bonvesin de la Riva was a teacher and perhaps subsidized the construction of the hospice of Sant'Erasmo. He was a prolific writer, especially in the Milanese vernacular, of which eighteen works remain. Of his production in Latin , however, only three remain. During
22983-558: The tendency for the rate of profit to fall borrowed many features of the presentation of John Stuart Mill 's discussion Of the Tendency of Profits to a Minimum (Principles of Political Economy Book IV Chapter IV). The theory is a corollary of the Tendency towards the Centralization of Profits . In a capitalist system, successfully-operating businesses return less money to their workers (in
23146-506: The town to the west of the railway is called oltrestazione , while the part to the east of the strada statale del Sempione is called oltresempione . The eight historical contrade competing at the Palio di Legnano are San Bernardino , La Flora , Legnarello , San Domenico , San Magno , San Martino , Sant'Ambrogio and Sant'Erasmo . According to the climatic classification of Italian comunes [ it ] , Legnano
23309-499: The town's strategic function: Legnano was one of the closest fortified towns to Milan, and from it Leone da Perego could control political events in the Milanese capital. Leone da Perego's role was later taken over by Ottone Visconti , who became archbishop of Milan in 1262. The struggle was now no longer between the social classes of Milan, but between the Della Torre and Visconti families, who vied for supremacy over Milan. Legnano
23472-417: The town, along the modern Corso Magenta, which at that time was called Via Porta di Sotto, just ahead of the entrance to Palazzo Leone da Perego and near the old Cotta Castle. The "Porta di Sotto," which was embellished with a 16th-century fresco , took the form of an arched opening above which a covered passageway had been carved out, connecting the architectural complex formed by Palazzo Leone da Perego and
23635-399: The urban agglomeration from north to south; this road came from the Olona valley and connected Castellanza , Legnano, the modern Legnanello district Costa di San Giorgio and Milan; two gates were built at the entrance and exit from Legnano, one of which, known as the "Porta di Sotto," was demolished in 1818 because it made it difficult for farmers' wagons to circulate. It was located south of
23798-553: The valley, rendering it a moorland useless to agriculture . Legnano is crossed by the Olona River, which cuts Legnano into two nearly equally sized portions. The Olona has a number of deviations both natural, such as the Olonella [ it ] , located near Visconti Castle , and artificial. The latter of these are the diversionary channels and levees that encase much of the river as it flows through Legnano, especially around
23961-411: The vast majority of the city's stretch, the waterway is pernilted into levee or stone embankments, which were built to minimize flooding. The Olona, before the construction of embankments and drainage channels, was in fact a river that scourged with frequent floods the areas it crosses. In the past there were deviations of the course of the river: natural, such as the Olonella, and artificial, such as
24124-515: The very worst case, lose its own money. But when it borrows in order to invest more, it can potentially earn more from its investment, but it can also lose more than all it has. Therefore, leverage magnifies the potential returns from investment, but also creates a risk of bankruptcy . Since bankruptcy means that a firm fails to honor all its promised payments to other firms, it may spread financial troubles from one firm to another (see 'Contagion' below). For example, borrowing to finance investment in
24287-399: The world economy at the pace of 20 and 50 years have been the subject of studies since Jean Charles Léonard de Sismondi (1773–1842) provided the first theory of crisis in a critique of classical political economy's assumption of equilibrium between supply and demand. Developing an economic crisis theory became the central recurring concept throughout Karl Marx 's mature work. Marx's law of
24450-479: The yen to rise in value, and therefore has an incentive to buy yen, too. Likewise, a depositor in IndyMac Bank who expects other depositors to withdraw their funds may expect the bank to fail, and therefore has an incentive to withdraw, too. Economists call an incentive to mimic the strategies of others strategic complementarity . It has been argued that if people or firms have a sufficiently strong incentive to do
24613-554: Was a Celtic center, conquered by the Romans in the 1st century BC. Since ancient times the inhabitants of Legnano lived on the edge of the river Olona Valley . These land, higher than the river, were not flooded by the regular floods of the waterway. As a result, the most important archaeological finds , from prehistory to Roman rule, were discovered along the edges of the Olona valley; these finds mainly refer to inhumations . The oldest furnishings found in Legnano are fragments of
24776-459: Was annexed to the Duchy of Milan in 1395. During this period more and more Milanese noble families began to stay in Legnano at various times of the year and to buy properties in the village. In this way, a rich noble class began to form in Legnano, which at the time of the battle was inhabited by about 1,400 residents; from these lineages, in the following centuries, many personalities who would mark
24939-420: Was closely linked to the archbishop of Milan through the monks of the convent of Sant'Ambrogio; it was the emperor himself who recognized the power over Seprio of this family and their connection with the archbishop. Legnano, in the early Middle Ages, was surrounded by a not very deep but floodable moat that originated at the height of the modern Piazza 4 Novembre and drew water from a derivation originating from
25102-501: Was influenced by three barriers: the Olona River, the strada statale del Sempione and the Domodossola–Milan railway . The city was the protagonist of a progressive urbanization that led to a considerable expansion of the population center. At the origin of this phenomenon was the birth of many industries that attracted workers from different parts of Italy. As can be seen from the demographic evolution , between 1871 and 1921
25265-452: Was introduced by Pope Sergius I and was officiated every February 2. It is no coincidence that the document mentioning Legnanello was connected to the monks of St. Ambrose. During the Middle Ages, the monasteries of the most important cities were the reference of the peasants of the smaller villages, to whom they provided protection and support, and the farmers of Legnanello had the monastery of Sant'Ambrogio in Milan as their reference. It
25428-431: Was known by in the Middle Ages , Ledegnanum , derives from the name for the region, Latinanium . Therefore, any suppositions linking the name of the city to the Celtic toponym Lemonianum ("place of the sacred grove ") or the predial adjective Laenianum , referring to a potential landowner named Laenius are false. The period of foundation Legnano is unknown: the name would have at least medieval origins. According to
25591-519: Was no accident. At the time, the village represented an easy access to the Milanese countryside for those coming from the north, since it was located at the outlet of the Olona Valley, which ends in Castellanza; this gateway therefore had to be closed and strenuously defended to prevent an attack on Milan, which was also facilitated by the presence of the important road that had existed since Roman times,
25754-487: Was one of military outpost of Lombard League during the Battle of Legnano , fought on 29 May 1176). On the Historia Mediolanensis written by Landulf Junior in the 11th century which deals with the history of Milan in the Middle Ages, it can in fact be read that Arialdo was captured: [...] iuxta locum Legnani [...] This testimony in English means "[...] near Legnano [...]". Leone da Perego , Bishop of Milan from 1241 to 1257, also stayed in Legnano. He lived in
25917-490: Was one of the theaters of these clashes, which ultimately saw the victory of the Visconti. The Della Torre family, before being defeated and disappearing from the political scene, purchased a convent in Legnano that stood south of the town on an island in the Olona River (after causing the Augustinian friars who lived there to flee), and fortified it by converting it into a military structure. The fortified outpost then passed to
26080-454: Was owned by Pietro Vismara, was located between Castegnate and the Gabinella locality in Legnano. Even in the Middle Ages, Legnano was not considered a village, but rather a borgo , that is, a town provided with a fortification and a market. After the medieval period, at a date impossible to define due to the absence of documents testifying to the event, the market in Legnano was closed. In
26243-615: Was the border of the counties of Seprio [ it ] and Burgaria [ it ] , both part of the Obertenga March [ it ] . Charlemagne preserved the structure of the Kingdom of the Lombards after defeating it, but replaced the native rulers with Franks. Specifically, the fortification of Castelseprio, founded by the Lombards, was placed at the head of the county of Seprio. Legnano originally gravitated around
26406-730: Was the spread of the Thai crisis in 1997 to other countries like South Korea . However, economists often debate whether observing crises in many countries around the same time is truly caused by contagion from one market to another, or whether it is instead caused by similar underlying problems that would have affected each country individually even in the absence of international linkages. The nineteenth century Banking School theory of crises suggested that crises were caused by flows of investment capital between areas with different rates of interest. Capital could be borrowed in areas with low interest rates and invested in areas of high interest. Using this method
26569-449: Was unable to renew the short-term debt it used to finance long-term investments in mortgage securities. In an international context, many emerging market governments are unable to sell bonds denominated in their own currencies, and therefore sell bonds denominated in US dollars instead. This generates a mismatch between the currency denomination of their liabilities (their bonds) and their assets (their local tax revenues), so that they run
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