A hung parliament could be an opportunity for Britain. All parties agree that spending cuts lie ahead, but no party will want to be saddled with the attendant unpopularity. A coalition government could push through the obvious legislation, and then call another election.
But this week, sterling was sold heavily after polls suggested a hung parliament likelier than had been thought. Why? Apparently it is the fear that no clear majority would result in gridlock rather than co-operation, leaving deficits unaddressed. Read more