This is the outline of a talk I've been giving in recent months on the dangers of ignoring the behavioural lessons from the QE Era as policy makers get ready for the inevitable next financial crisis. The great thing about financial crises is there will always be another one - no point panicking today when you'll get to panic again tomorrow! 

A key element of Blain’s Virtuous Sovereign Trinity is a Sustainable Bond Market – in Bonds there is Truth. Its critical we understand how QE created massive market distortion by mispricing money, and make sure it does not happen again.

Markets expect a swift series of interest rates cuts will drive prices higher. They are fooling themselves. Inflation remains sticky. Central banks have a debt crisis to address while weaning the economy off the distortions of low-rate addiction. The scope for cuts is limited. Time to focus on what “higher for longer” real-rates and mean for market fundamentals.