Endnotes interview with Pavlos Roufos

… To undertand this I also think a wider framework is necessary, and I find Daniela Gabor’s work indispensable: rather than pointing towards a return to state-led “fiscal dominance”, Gabor shows that QE should be understood as a support mechanism for the contemporary macro-financial regime, where money markets, securities, derivatives and other high risk instruments increasingly rely on safe collateral. For Gabor QE represents the transformation of the government bond market into a “collateral factory” for money markets, rather than a printing-machine that brings money into household or state budgets. Linking this insight to the afore-mentioned problem of decreased productivity (and, thereby, lower returns for capital investment), a different picture emerges where QE can be seen as necessary for the stability of the macro-financial regime without being able to generate growth or return to state-led fiscal dominance …

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