danielagabor.bsky.social
912 posts
8,877 followers
285 following
Regular Contributor
Active Commenter
comment in response to
post
capital, threatened in extremis
comment in response to
post
The Bailey premium in one chart -
imagine if Keir Starmer, in a sudden bout of courage, would take the fight to the real drag on the fiscal position, the Bank of England governor.
Instead he's hurting disabled people.
comment in response to
post
The market Ben, the market mechanism.
comment in response to
post
here @pilitaclark.bsky.social is Greenpeace paragliding our report on greening ECB corporate bond portfolio onto the ECB's Frankfurt building
www.politico.eu/article/gree...
comment in response to
post
here is @isabelschnabel.bsky.social unpacking the carbon bias in market neutrality
www.ecb.europa.eu/press/key/da...
comment in response to
post
and for those new to these ideas, here is (unfortunately only there) Lagarde answering questions in European Parliament
x.com/PositiveMone...
comment in response to
post
How do I know about this omerta?
First, the G20 expert group on climate I was part of last year was told in no unclear terms by several G7 countries that they wouldn't support the report if we insisted on keeping central banks in.
www.ucl.ac.uk/bartlett/sit...
comment in response to
post
Financiers - BlackRock the most active lobbyist against - were relieved.
The threat of transformative climate action was off the table.
Since then, we live under a climate central bank omerta!
comment in response to
post
Andrew Bailey at Bank of England understood the threat to CB political power first and dropped climate.
ECB then followed, as Lagarde couldn't fight on two fronts (inflation and climate)
comment in response to
post
It didn't just put responsibility for climate straight in the court of the most powerful state institution but also undermined the foundations of that power - if central banks do credit policy, then Trump gets to ask why not for his benefit
comment in response to
post
The program had a dry, technical name - Tilting the corporate bond portfolio - but the politics was intensely contested
comment in response to
post
from 2021 to 2023, the ECB did a lot more than the stress tests in the FT article - it took active steps to stop its climate destructive monetary policy.
why the taboo around it? Because correcting carbon bias looks a lot like credit policy, and it penalises dirty lending.
Financiers hated it.
comment in response to
post
the ECB, with (in hindsight very brave) Isabel Schnabel, took Carney to the logical conclusion and admitted that the neoliberal foundation of modern central banking - market neutrality - meant carbon bias.
Far from being a neutral arbiter, ECB was complicit in financing dirty activities
comment in response to
post
then Mark Carney gave his 2015 speech.
Financiers described him as a 'dangerously deluded fool'.
Why? Because this was something truly radical - he told the world central banks were already climate policy makers.
comment in response to
post
but then 2008 crisis happened, and the invincible aura of independent central banks crumbled - misguided, Minsky-crises blind.
Their Friedmanite motto - the foundation of cb independence - 'you cant buy government bonds' also crumbled.
But cb still got to keep their political power.
comment in response to
post
as Milton Friedman's suspicions of public money creation - always political, always inflationary - got political purchase, central banks became today's institutions:
'technocratic', price stability oriented, first among macro institutions (monetary dominance), market neutral, no credit policy
comment in response to
post
central banks are powerful public institutions - they (solely) create public money and control terms of private money creation.
in the good old pre-neoliberal days, the state used central banks for credit policy: the deliberate allocation of credit to strategic sectors (China still does it)
comment in response to
post
I know this too well, not just as a researcher, as a scholar involved in global policy spaces, where greening central banks has been a taboo for the past three years
comment in response to
post
this erasure is the result of a systematic effort to basically re-write the history of central bank climate action, a concerted effort that has involved central banks themselves, governments, and financiers.
comment in response to
post
oh look @theguardian.com editors, you may consider some fact checking before publishing op-eds from people with an ax to grind
bsky.app/profile/elie...
comment in response to
post
ha, and Mamdani closed his speech with an FDR quote - well that's a better heir than Biden.
comment in response to
post
joking aside, we'll enjoy the sweet feeling of hope for one morning.
comment in response to
post
Mamdani also broke the curse of the economists letters!
A few of us signed one in support of his social democratic plans, and I secretly feared it would be his undoing :)
www.thenation.com/article/econ...
comment in response to
post
I am serious - Trump billionaires like Bill Ackman are funding Cuomo, because American democracy means big money can interfere with every process in every party!
comment in response to
post
nothing can beat the chupatz of a private equity titan, who makes money from the socialism for the rich version of American capitalism.
comment in response to
post
I hear you - many a time I've had to convince people I'm not the Gabor in that corporate headquarters photo
comment in response to
post
Pub chain heiress is my favorite bit of that list of superpowers.
comment in response to
post
'Increased investment will always be accompanied by increased saving, but it can never be preceded by it. Dishoarding and credit expansion provides not an alternative to increased saving, but a necessary preparation for it. It is the parent, not the twin, of increased saving.'
comment in response to
post
'investment financed by savings' - loanable funds fallacy discredited by Keynes nearly a century ago and inconsistent w endogenous money
comment in response to
post
And to clarify: I wasn't asking for explanations, everything in that sentence is wrong in macro monetary terms
bsky.app/profile/jbie...
comment in response to
post
I've read this three times and still have no idea what it means. Bet Wolf doesn't either.
comment in response to
post
Apparently old fashioned social democracy is too radical for Establishment Democrats.
comment in response to
post
this new partnership - besides 'agile' deregulation at behest of capital - involves 8 'high-growth' sectors, including, you guessed, the City of London, which apparently needs the gentle derisking hand of the British state