The bond scare and the balance of power
- Posted on August 21, 2026
- By Financial Times
- 11 Views
- 1 min read
The financial landscape has undergone a significant transformation as bond markets reassert their traditional influence on government spending policies. Following a decade of unprecedented monetary stimulus and low interest rates, fiscal discipline has regained prominence in determining a nation's economic capacity. This shift fundamentally reshapes the relationship between political power and financial constraints, forcing policymakers to reconsider the sustainability of expansive fiscal programs and confront the reality that unlimited spending is no longer feasible.
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