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Government debt: index linking is backfiring for Britain
Lex专栏:英国政府自设债券陷阱

Soaring UK inflation has exacerbated the pain of excessive debt
在通胀飙升之际,英国对通胀挂钩债务的过度依赖加剧了财政痛苦。

Higher prices in the UK will not only squeeze the pocketbook of the average Briton. It will also hit the government hard. Talk of double-digit inflation this winter — Citigroup now thinks the rate could surpass 18 per cent — comes as energy prices continue to soar. But the country’s over-reliance on inflation-linked debt will mean punitively higher financing costs too.

英国物价上涨不仅会挤压普通英国人的钱包。它也将严重打击政府。在能源价格继续飙升之际,有人开始讨论今冬通胀或达到两位数——花旗集团(Citigroup)现在认为,通胀率可能超过18%。但英国对通胀挂钩债务的过度依赖也将意味着融资成本会高出天际。

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