A ‘bond crisis’ is upon us, apparently. Break the usual framing and the opposite emerges: borrowing costs have fallen, and the ‘crisis’ is seen for what it is - manufactured panic serving particular interests.
Why sovereign democracies must dismantle the mythology of ‘bond vigilantes’ to restore political agency
There is no risk that interest rates on UK government debt will reach crippling levels. Interest rates are policy variables. Paying interest is a political choice. Betteridge’s law of headlines applies.
The government borrows at a price of its choosing. Here’s how.