Casualty in a World of Higher Borrowing Costs

“U.K. Prime Minister Liz Truss’s resignation is a stark reminder of how high inflation and rising interest rates have changed the game for politicians and narrowed their room to maneuver,” the Wall Street Journal reports.

“For the past decade, low inflation and ultralow interest rates gave governments around the world room to spend more and pile on debt without alarming investors. Those days are over.”

Gerard Baker: “For a decade since the global financial crisis, governments and the private sector alike have floated on an expanding ocean of free money. That era is over. Nothing announces the start of a new era as effectively as the near-death experience for the UK government this month.”

Axios: “The ignominiously fast downfall of U.K. Prime Minister Liz Truss is a warning sign for the U.S. and policymakers around the world: Deficits matter again.”