Can someone explain to a non-expert what a bond-market is, and why every government of every colour seems to scared and subservient to them?
Isn't just a market betting on the ability of a future government to pay up when a bond bought today is redeemed in future?
That's seems far too simplicity and insufficient to cause such fear in policy-makers ... so I've clearly misunderstood.
And also, even if a future economy is in downturn, the gov can always invent money to pay up?
