Aidan Regan: Britain’s self-inflicted woes may well be a warning sign of things to come in Europe
Europe might find itself in the same position as Britain if the ECB continues to pursue an aggressive quantitative tightening strategy
There are two things driving financial instability in the British bond market at the moment. The first is an incompetent Tory government that is committed to an outdated, neoliberal, tax-cutting model of trickle-down economics. The second is a Bank of England that sees quantitative tightening as more important than stabilising the macro financing conditions for the British government.
Britain’s central bank is basically disciplining the Tories, in a tug of war which highlights one of ...