David Blanchflower says Liz Truss is “doubling down into gagaland”CHRIS RATCLIFFE/BLOOMBERG VIA GETTY IMAGES

A former rate-setter at the Bank of England has said investors should bet against sterling as he accused Liz Truss of pursuing “gagaland” economics.

David Blanchflower claimed the new prime minister was pursuing “disastrous economic policies” and said that “I have never in my 50 years of doing economics seen anything as bad as this”.

His criticism of Truss, in a series of posts on Twitter, came after the prime minister suggested in interviews that her government would go further in cutting taxes than previously indicated. The government will set out its approach to fuelling economic growth at a mini-budget on Friday.

However, Blanchflower claimed that Truss was doubling down “into gagaland”. He told his followers on Twitter to “short the pound”, which has already