Basically this is him trying to explain a policy that at its core is a paradox.

Both addressing financial stability, allowing some sort of easing, unwinding of positions

that are untenable in the current regime, will also fight inflation using very similar

types of tools in terms of raising rates.

It is mind spinning.

I can see why they're very, very sensitive about the concept of fiscal dominance right

now.

I can see why they are almost immediately the questions were asked at the Bank of England.

Will they accommodate what this government is going to do?

When they first came up with a guilt market operation, they were accused of just that

pandering, accommodating what fiscal policy makers have decided to do.

I think it's really, really difficult for them to do now.

I think that's why we're seeing the kind of language the approach that we've seen

from Governor Bailey.

That's my guess.

I can't get inside his head.

The sense I get from him and the way he spoke yesterday just sounded like a man who

was very, very sensitive to the idea that they might be contributing to so-called fiscal

dominance.

The question argument that for decades central banks helped offset a lack of action from

fiscal policy makers, a lack of action from Washington, D.C.

For the parliament.

...