Episode Details

The British pound sterling plummeted this week after Prime Minister Liz Truss unveiled her budget containing a divisive 45-billion tax cut, spooking markets and leading to warnings from the IMF to the White House. The Bank of England took emergency measures to keep the economy afloat, promising to buy bonds at "whatever scale is necessary." Can the UK economy avoid catastrophe as it faces threats from inflation and fuel shortages? Leading British economist Alpesh Paleja explains what exactly happened to bond markets, giving us a sobering assessment of the country's financial health and whether we have seen the worst of the storm.

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