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Opinion
Mark Gongloff

The British Pound Is Caught in a Doom Loop

The Bank of England had to abandon inflation-fighting to rescue the bond market, which will make it have to fight inflation even harder.

King Charles and Liz Truss. He can’t just fire her, in case you’re wondering.

King Charles and Liz Truss. He can’t just fire her, in case you’re wondering.

Photographer: YUI MOK/AFP/Getty Images

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For years, the heavyweight champion of Central Bank Clownery has been the Central Bank of the Republic of Turkey. It operates at the whim of strongman Recep Tayyip Erdogan, who has this novel economic theory that slashing interest rates fights inflation. It’s a bold strategy, Cotton. It’s not paying off for them. The bank slashed rates last week with inflation running at 80%. That’s eight-zero percent.