Can Britain escape the “moron risk premium”?
Parsing the bond market’s judgment of the government
After a month of being exciting for all the wrong reasons, Britain’s bond market is at last settling down. All it took was an emergency bond-buying programme from the central bank, the defenestration of a chancellor, the installation of a sensible successor, the humiliation of a prime minister and the shredding of a vast unfunded tax-cutting package that set the fiasco in motion.
This article appeared in the Finance & economics section of the print edition under the headline “The moron risk premium”
From the October 22nd 2022 edition
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