Since the GFC, economists have suggested that using debt to finance government spending is a free lunch. But the tide has turned in the past two years.
Until recently, any suggestion of fiscal prudence was quickly dismissed as “austerity” by economists on the left. But with higher interest rates fast becoming the new normal, the idea that any economic problem can be solved with more government borrowing has become untenable
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The world’s financial markets are encountering a force they didn’t bet on for 2024: A strong dollar is back and looks set to stay. Having entered the year predicting the greenback would decline, investors have been forced into a rethink by a red-hot US economy and sticky inflation requiring the…