The global economy has been subject to two significant shocks, the Covid pandemic and the war in Ukraine. Adding across them, these events are forcing us to rethink some of our basic propositions on how economic policy ought to be structured. The post-global financial crisis settlement of ultra-low interest rates and escalating public and private debt seems no longer tenable.

Nominal interest rates are being normalised in a manner that is exposing balance sheets to considerable risk in terms of