It has been a whirlwind two weeks for me since the new UK government launched its mini-budget that caused maxi-damage to Sterling and the Gilt market. But now that the initial panic has gone and I had time to take care of some loose ends in my day job, I found the time to sit back and follow the advice of my wife who always reminds me to go back to “first principles” to assess difficult situations. Normally, I focus my writing on empirical results because I try to understand the world as it is, not as some theory says it should be. Yet, this is one instance where thinking about the proposed new government policies in the UK in a more fundamental way can help us understand why these policies cannot and will not work in the UK.
Kement to number 11 please.