Abstract

The commentary reflects on the switch from fiscal to financial instruments in the pursuit of important social and economic goals on the part of capitalist states, on its causes and risks. The financialization of state action has a number of consequences that raise many questions that are, to some extent, addressed in the commentary: how can the stability of a system so prone to market manias and panics be secured? What are the consequences in terms of the distribution of wealth and power among social classes? How can fundamental infrastructural investments be secured when the indirect financial instruments now preferred are only blunt steering tools? Can financial dominance be escaped without falling prey to fiscal dominance?