Why would a hung parliament cause the pound to fall?
http://www.guardian.co.uk/business/2010/mar/01/hung-parliament-fears-send-pound-falling
A rec will be awarded to whoever can comment on the logic chain taking place here, staring from:
1. A hung parliament means a (supposedly) weaker government.
right so this is an educated guess but.........
ReplyDeletea hung parlaiment means a weaker goverment, in times of high UK debt a hung parlaiment may cause trouble when it comes to deciding on how to pay back money, what to budget for and goverment spending. this could cause the value fo the pound to drop even more and therefore become a poor investment option.
is that in anyway correct?