What do you do when inflation takes hold of your economy, wages soar, yield spreads explode with an external deficit, and the currency collapses? Pretty much what the US is doing. Hike rates. Fiscal consolidation. And take your adjustment.
Not this! Deutsche:
Britain’s new finance minister Kwasi Kwarteng unleashed historic tax cuts and huge increases in borrowing on Friday in an economic agenda that floored financial markets, sending sterling and British government bonds into freefall.
