The Policy Muddle Snaring the World’s Big Central Banks

Policymakers in the UK, US and Japan are trying to pull off a high-wire act: They’re leaning against rising longer-term government bond yields even as they talk tough on inflation. It amounts to hitting the accelerator and brakes at the same time. Conspicuously absent from the discussions are any serious attempts at taking the politically difficult decisions needed to rein in unsustainable national debts and create a healthier policy mix for the economy. Instead, what’s on offer are bond-market