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Central banks want to fight inflation, but they still need to keep the financial system functioning. The two goals may be conflicting.

Por: MarketWatch Politics October 09, 2022

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CHICAGO ()—The malfunctioning of the government bond market in a developed economy is an early warning of potential financial instability. In the United Kingdom, the new government’s proposed “mini-budget” raised the specter of unsustainable sovereign debt and led to a dramatic widening in long-term gilt yields . Recognizing the systemic importance of the government bond market, the Bank of England correctly stepped in, both pausing its... + full article



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