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Daniela Gabor Profile picture
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9 Sep, 4 tweets, 2 min read
Speaking of Revolution without Revolutionaries @adam_tooze here is Lagarde publicly making a case for (ECB-led) coordination between monetary and fiscal policy as if it doesn't go against everything we thought we knew about CB independence.
this stunning shift in central bank discourse only makes sense if one understands the sovereign-bond centred macrofinancial order we live in

with some exquisite 'the lady is not tapering' trolling of Margaret Thatcher, who, we should remember, was a Milton Friedman fan and shared his views that coordination between monetary & fiscal policy was an abhorrent inflationary monster of Keynesianism

meanwhile, in European fiscal quarters, some are crying for the Trichet status-quo

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More from @DanielaGabor

Daniela Gabor Profile picture
27 Aug
For the past 10 years, my macro essay assignment: "Globalisation has undermined central banks' ability to control inflation. Discuss critically.'

No reason to change it this year.
Essay involves reading (80pages) Woodford(2007) and then asking how (financial) globalisation may disrupt the standard DSGE transmission mechanism
(also Jay Powell is boldly leading us into a post Woodfordian macro world)
Read 5 tweets
Daniela Gabor Profile picture
15 Aug
what @FT forgot to tell you is that Berlin wants to housing back in public ownership

because it's European city where institutional landlords - private equity & complex ecosystem behind - have been most aggressive in turning housing into an asset class

ft.com/content/4a5fb5…
institutional landlords minted EUR 40bn of Berlin houses into assets that they rent out.
roughly the combined value of London and Amsterdam's institutionally owned houses.
this trend - financialisation of housing, or Housing as an Asset Class - will only accelerate after the pandemic.

in 2021 alone, funds targeting residential housing in Germany raised EUR 5 bn from your/my pension fund, insurance company & your rich uncle's private wealth fund
Read 11 tweets
Daniela Gabor Profile picture
11 Aug
I love infrastructure just as much as any post/Keynesian, and what concerns me (analytically and politically) is not @adam_tooze obsession with infrastructure but financial capital's.
@adam_tooze so we should be talking political economy of Infrastructure as an Asset Class: why and how did private finance sell infrastructure as a transformative economic policy to governments everywhere, formally at G20 since Argentina's (2018, Macri) presidency?
the why according to Natixis: financial capital wants to run our environmental, technological and social transition #WallStreetConsensus
Read 13 tweets
Daniela Gabor Profile picture
9 Aug
a reminder as you read the #IPCCReport today that governments everywhere, including Biden's, already have an answer to 'what do we do about the climate crisis'

unfortunately for us, and the planet, the answer is 'let's surrender decarbonisation macro to carbon financiers'
take German Greens: in @FT op-ed today, Baerboek proposes 'bold' EUR 50 bn a year public investment in digital and low-carbon transition.

A 10bn over the annual subsidies Germany provides to fossil fuel activities.
Germany, we know from @squirrelista and others, pioneered derisking private finance for climate & development.

call it green ordoliberalism, green financialisation, green neocolonialism, it's been a very successful German export

Read 7 tweets
Daniela Gabor Profile picture
16 Jul
It wont surprise many that the House of Lords inquiry into QE did not produce a Radcliffe Report - but is more hawkish than I expected.

ft.com/content/60d239…
first, it's somehow concluded that QE may be inflationary, while simultaneously calling @bankofengland to clarify how QE generates inflation
@bankofengland 'slaves to which defunct (monetary) economists?' via quick word count in 68 pages report:

* 'inflation' x ≈ 200 times
* 'money supply' x 1
* 'fiscal' x 60
* 'coordination' fiscal&monetary x 2
* 'market liquidity' x 4

Milton alive in spirit, if not theoretical essence
Read 13 tweets
Daniela Gabor Profile picture
13 Jul
Spain's Social Democrats asking Cuba to push on with 'structural reform' as if:
1. we dont know how that went in Europe
2. it's not the very pro-market reforms that are fomenting inequality and social tensions against background of tighter US blockade
Under Diaz-Canel, Cuba has implemented gradual but substantive Washington Consensus:
weakened social safety net (la libreta, comedores en empresas), pushed price liberalisation, unified currencies, allowed more private sector activity, prioritised foreign currency shops
some of these measures make sense if you're living under the mother of all balance of payment constraints.

but we know from Eastern Europe that such measures exacerbate inequality dramatically.

pretending otherwise is silly, especially from 'progressive' politicians
Read 5 tweets

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