Britain is in the grip of financial turmoil. Over the past week, the pound has crashed and rallied, as has the bond market. Pension funds, at one point, looked to be on the brink of collapse, prompting an emergency intervention from the Bank of England. All this has followed last week’s now globally infamous mini-budget, unveiled by prime minister Liz Truss and chancellor Kwasi Kwarteng. While there is no doubt that this incoherent budget acted as a trigger, it is not the underlying cause of Britain’s woes. It simply brought the UK economy’s underlying fragilities to the fore. There’s more to this market meltdown than Truss and Kwarteng’s hapless ‘mini-budget’.

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