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The new government faces serious economic risks

Three big political issues still cloud our economic outlook

By Anatole Kaletsky  

©Kirsty Wigglesworth/AP/Press Association Images

Although the Conservative victory has come as a huge surprise, it does not change anything very much about the UK’s economic or financial prospects. In that sense the absence of any big reaction in the financial markets is understandable. The pound and the stockmarket would have fallen steeply as a result of a hung parliament—and that was certainly what I expected (and predicted throughout…

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