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Daniela Gabor Profile picture
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12 Nov, 4 tweets, 1 min read
Wow Phillip Lane managed a whole speech on fiscal stance/rules in Euroarea without once mentioning ECB, the buyer of around 90% sovereign debt issued in 2020-21.
And I don't mean 'subordinate fiscal policy to the ability of the central bank to meet inflation target' but the very real fiscal-monetary coordination we've had in pandemia.
By itself, the suggestion to set coordination parameter around gap to inflation target ignores the fact that inflation is often driven by globalisation (and the ton of literature around it)
Don't often disagree w @fwred but this proposal to me is a step towards sharper monetary dominance not coordination

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More from @DanielaGabor

Daniela Gabor Profile picture
12 Nov
Nothing reminds me how much I hate privatised infrastructure than a train journey in the UK.
I dont romanticize public trains but man, expensive and shitty and never on time seems a bit much for private.
10 minutes wait to get a platform...one minute over my connection.
Read 5 tweets
Daniela Gabor Profile picture
11 Nov
oh look @IsabellaMWeber carbon shock therapy must be around the corner,

we're reviving Janos Kornai's soft budget constraint in its crude 'markets efficient, state bad' version

ft.com/content/9d842b…
Kornai's soft budget constraint is wonderfully intuitive:

inefficiencies&shortages baked into centrally planned economies as state-owned companies dont face discipline of market but pressures and incentives to go above plan and race for resources.
but it relies on capitalist vs state-owned company dichotomy:

one driven by profit, constrained by demand & disciplined by market competition into efficiency.
other is quantity-driven, constrained by ability of managers to deal w shortages via bargaining w planners/other firms
Read 16 tweets
Daniela Gabor Profile picture
8 Nov
what should we make of repeated calls for 'getting carbon prices right' or 'trusting the power of price signals' #COP26?

it's code, we worry w @IsabellaMWeber, for #CarbonShockTherapy coming to a Global South country near you

ft.com/content/1d2dcd…
Big Finance and Big Business wants us to 'trust the power of price signals'
we in Eastern Europe are familiar with the rhetoric of ‘get prices right and the market will deliver’.

We know it as shock therapy - and we remember the shock therapists.

economist.com/europe/1990/01…
Read 16 tweets
Daniela Gabor Profile picture
3 Nov
Today is private finance day #COP26. It’s a big day, because private finance keeps fossil fuel companies alive and polluting despite commitments to net zero.

If policy makers were serious about shrinking dirty lending, this is what you’d be reading in the press release 1/n:
1. Today, central banks led by Bank of England have collectively agreed on framework to penalize dirty lending.

This will be developed and introduced within the next two years, upgrading escalation-approach pioneered by the Bank of England.

bankofengland.co.uk/-/media/boe/fi…
2. By ending their historical carbon bias forged by commitment to 'market neutrality', central banks will ensure that the cost of capital for fossil fuel companies goes up significantly, shaping credit price signals to redirect flows to green activities.
Read 32 tweets
Daniela Gabor Profile picture
2 Nov
note that this is not wishful/deluded thinking

but a political commitment to abandon Green New Deal/ state-led decarbonisation

and to put in place subsidies for 'escorting' the market into climate solutions without penalising it for systemic greenwashing
for a second, another Biden seemed possible.
same 'the market will deliver, with a bit of help from governments' message from @KGeorgieva of IMF:
Read 9 tweets
Daniela Gabor Profile picture
14 Oct
if you think the Vatican is a cesspit of financial shenanigans, wait till you see this incredible documentary on Romanian Orthodox Church and its leader, Patriarch Daniel of Romania, aka 'The Great White'

(1.2 million views in opening day)

this is an outrageous story of Church milking public funds at national, regional and local level with help from politicians across the political spectrum

of a Patriarch doubling as local baron

of a Patriarch covering priests' sexual abuse
most rich men (yes) in Romania have become rich by stealing from the state, by legal and illegal means, but so far we knew little of the Orthodox Church's role, including its unholy cuddling of far right politicians
Read 16 tweets

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