Daniela Gabor: British inflation-linked bonds add £180 billion cost over five years

Daniela Gabor: British inflation-linked bonds add £180 billion cost over five years
Inflation-linked bonds add £180 billion cost

Daniela Gabor draws attention to the significant impact of British institutional constraints on fiscal space.

She points out that the fiscal drag from inflation-linked bonds has resulted in nearly £180 billion in additional costs over the past five years. Gabor also notes that when the Bank of England misses its inflation target, taxpayers ultimately bear these costs.

Earlier this year, Gabor suggested financial repression may be imminent as the state contends with challenges to full capital mobility and waning U.S. influence, according to her analysis here. She also recently highlighted OpenAI’s plan to borrow $4 billion at 17.5% interest from private equity firms including TPG, Bain Capital, and Brookfield here. These recent observations reflect her continued focus on government financing and institutional responses.

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