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punished by the press mainly for seeking a heterodox monetary position
'punished by the markets for increasing their risk by appearing to be a maniac' is the truth of it
More than just the unfunded tax cuts, it was the combination of sacking the widely respected permanent secretary of the Treasury on day 1, refusing to let the OBR produce forecast for the budget, and talking about how said budget was only the beginning and things were shortly going to get even wilder
The markets aren't so much committed to the orthodoxy, as they are afraid of not being able to predict what's coming because the people in charge are dogmatic morons. There is plenty of scope to rewrite all the rules provided you do it carefully and predictably
lemonade-
They certainly went about it with reckless abandon, I agree. I'm not a huge fan of the OBR, but refusing their forecast was obviously going to spook some traders.
Sacking the permanent secretary of the Treasury though, I don't see that as being unreasonable if a government wants to move away from their typical 'treasury-brained' ways. Reporting on it as an argument for Truss' personal failings is just another bit of Westminster psychodrama, so I'd be inclined to ignore it.
The markets aren't so much committed to the orthodoxy
I think that's debatable, and regardless of their potential reaction to heterodox policies, the press has already learned to react to any change negatively. That's limited current and future governments' ability to change the rules, even when done carefully.
(Edit: not that Labour are interested in doing so anyway)
slippers
The question is whether it’s really been a convenient cover for banks to increase their profit, rather than something that deeply affected market dynamics in any permanent way. From your link:
The graph shows its effect quite well on bond yields, which seems pretty temporary to me.
Truss appears to be punished by the press mainly for seeking a heterodox monetary position, rather than the real problem of the mini-budget being Truss/Kwarteng’s aim to expand neoliberalism. That’s problematic when it’s fairly clear that we’re going to need to rely on some heterodox ideas to get out of our current economic funk.
The first response for any change will now be “won’t anyone think of the bond traders?”, rather than discussion about where we can have some reasonable democratic control of parts of the economy that aren't working.