Are we sliding towards fiscal dominance?

Strictly speaking, recent measures by the Bank of England do not qualify as so-called “fiscal dominance”. But this could be the thin end of the wedge, and not just for the UK. While we are a long way off central banks in developed economies directly financing governments, we could increasingly see central banks being constrained in what they do by the fiscal situation, such as having to modify their plans for quantitative tightening (QT). This is most likely in the UK and euro-zone.