Truss Needs to Make Her Borrowing Work for the Markets. Which May Mean Her Spending Review Rethinking Whole Functions of the State.

Source: Cato Institute
by Ryan Bourne

“Liz Truss, the incoming prime minister, has sought to assuage jitters by reaffirming her commitment to central bank independence, to raising the growth rate of the economy, and to reversing supply‐​constraining tax hikes. But as the scale of the energy crisis and likely interventions have crystallised, the cost of government borrowing has jumped. In recognition, Kwasi Kwarteng must soon set out a longer‐​term framework for ensuring fiscal probity — and that requires him regripping government spending.” (09/12/22)