As fun as it might be for outsiders to gawk at the political chaos engulfing the UK, Prime Minister Liz Truss’s resignation on 20 October is a sideshow. The bigger problem is that recent events in Britain are an alarming vision of a fate that potentially awaits all of us in developed economies.

The conventional view of Truss’s rise and unfortunate fall holds that markets took fright after then-chancellor Kwasi Kwarteng on 23 September announced a major package of tax cuts and energy subsidies.