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But we saved everything 🙂.
Robin Brooks highlights that 'Liz Truss'-style blow-ups in bond markets, where currencies experience sharp declines, are becoming more frequent within the G10 countries.
He points to the U.S., which saw such an event in April 2025 following the rollout of reciprocal tariffs, and notes that Japan has experienced a similar situation for nearly two years.
Brooks has previously observed that the yen has weakened as the Bank of Japan’s bond purchases reduced the effectiveness of official FX intervention, putting further pressure on the currency’s value (article). He has also highlighted Italy’s cash deficit at 6 percent, noting the gap with its lower accruals deficit in the context of Euro zone fiscal data (article). These observations reinforce ongoing concerns over fiscal and monetary policy impacts in developed markets.