"Why should the cost of government financing be dictated by secondary-market transactions when the government is the issuer of the currency in which those bonds are denominated?
That is exactly the question I think we should be asking. The government is not bound by the bond market. Since 1981, when Sir Geoffrey Howe, Thatcher's then Chancellor, introduced the so-called full funding rule, it has chosen to be so, but that decision could be revoked. The question is: why isn't that being done now?"
https://www.taxresearch.org.uk/Blog/2026/10/09/why-does-the-government-feel-bound-to-serve-the-bond-market/#gsc.tab=0
#UKpolitics #economics #Macroeconomics