Chen, Zefeng; Jiang, Zhengyang; Lustig, Hanno; … - National Bureau of Economic Research - 2022
We study three centuries of U.K. fiscal history. Before WW-I, when the U.K. dominated global bond markets, the U … what is warranted by its own macro fundamentals. After the relative deterioration in U.K. fundamentals, due to the run …-up in debt during WW-I and WW-II, bond investors focused exclusively on the U.K's own macro fundamentals. Since then the U.K …