Will economics trump politics?

One of the less acknowledged effects of the global economic crisis is the more prominent role politics is now playing in economics and markets. As global leaders and their central banks are being required to intervene more than ever to fuel flagging economies, the current economic climate is wrought with uncertainty about whether their actions will be motivated by economics or pragmatic politics. Arguably, the three biggest players on today’s political-economic stage are the US, the eurozone and Japan. Not only is each facing difficult political decisions, but developments within each...