From Washington to Paris, London to Tokyo, policymakers in every large economy have been counting the costs of bond market turmoil in recent weeks. But the brunt of the pain is being borne by heavily indebted developing countries that have little hope of influencing the whims of global investors, but pay the price regardless.
Markets have responded to the war in the Middle East, and a spendthrift White House, by dumping government bonds – driving up borrowing costs just about everywhere.
Finance ministers and central bankers gathering in Bangkok this week for the annual meetings of the International Monetary Fund and the World Bank may be loth to point the finger at Donald Trump’s regime, but all are at least in part hostage to the US…