We think of Britain as a world-beating economy. We would be better off thinking about Taiwan | Larry Elliott

Instead of living with this delusion, leaders should examine emerging market economies and try to emulate their success

Inflation is at a 40-year-high. Food bills are soaring. Pensioners are so fearful of rising energy costs that they are delaying turning on their central heating. There are eye-watering" cuts in public spending and tax increases to come. But never mind. All will be fine now that the grownups are back in charge.

Jeremy Hunt was at his emollient best in his Commons debut this week. The government has learned the hard way that you dispense with orthodoxy at your peril. Abacus economics - derided by Liz Truss during her leadership bid - is vital if the UK is to take advantage of its fundamental strengths.

Larry Elliott is the Guardian's economics editor