Julian Jessop, IEA Economics Fellow, has commented in The Times on a claim made by the National Institute of Social and Economic Research that the Treasury could have saved £11 billion by insuring against rising interest rates.

Julian argued that the recommendation was “technically correct but completely unrealistic” and that it “would have required the Treasury to have perfect foresight about what interest rates were about to do.”

He also added: “This has been described as insurance but unlike forms of insurance it could have actually lost the government a lot of money if it had got the timing wrong.”

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