BoE Governor Bailey: Core Financial Markets Must Absorb Future Shocks

Bailey's framing matters because it quietly shifts the burden of shock absorption from sovereign balance sheets to market infrastructure — a structural argument, not a cyclical one. If governments are less able to buffer severe recessions, the resilience of core markets becomes the de facto backstop, which puts market plumbing and liquidity design squarely in the policy conversation. The open question is whether that shift is matched by concrete changes to how those markets are structured, or remains a rhetorical preference.