Yesterday’s elections in the US have resulted in a new balance of power in the country that can have a significant impact on economic policy. The Democratic party has lost control of the House of Representatives while retaining a slim majority in the Senate. This clearly presents a scenario of strong confrontation and difficulties in approving laws in almost any area, including, of course, economic policy. Given that the recovery of the US economy is still slow, as is the case in many industrialized countries, the potential stalemates can have serious implications.
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