4 ways political events can impact the economy

SINGAPORE (July 25): To distinguish between political developments that really matter to the economy or financial markets and others that are just noise, we need to understand which dimensions of politics actually impact businesses, and then assess whether the political flashpoints that we know are coming contain enough of these dimensions to cause permanent or far-reaching dislocations.

Typically, the political events that matter have the following characteristics:

1. A change in political leaders or parties that lead to a big ideological shift

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