IN 1981, Francois Mitterrand was elected as the first Socialist President of the French Fifth Republic, on a platform of nationalisation, wealth taxes and a higher minimum wage. Two years later, after the franc was repeatedly devalued within the exchange rate mechanism, he changed course and adopted austerity. It was the first sign that left-wing parties were adopting some of the market-friendly policies of Margaret Thatcher and Ronald Reagan. Arguably it was also a sign that left-wing governments could be overpowered by international capital flows; flows that had been released with the end of the old Bretton Woods system. This was the era of the bond market vigilante.
The British election on May 7 looks likely to end up with a Labour minority government; a model for the FT by Populus gives Ed Miliband an 80% chance of being the next prime minister. May 2015's seat calculator has Labour 10 seats ahead; none of the other models give the current Conservative/LibDem coalition a majority (even if such a deal could be resurrected). In contrast, three out of the five models suggest Labour can govern with the support of...Continue reading
In Greek mythology, Gorgons were creatures whose terrible visages could turn men to stone with a single glance. The Air Force's Gorgon Stare sensor system can't do that, but its unrelenting gaze is turning thousands of terrorists into targets who can no longer elude U.S. weapons. The service almost never [...]
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