Implications of Barack Obama’s election victory

In an historic election, Barack Obama has won the US presidency on a platform of change. While an Obama presidency will step back from the pro-business, almost laissez-faire, neo-conservative approach of the Bush Administration, an extreme lurch to the left is unlikely. Rather, Barack Obama is likely to prove pragmatic, much as President Clinton was.

Key aspects of an Obama administration are likely to be:

• A new fiscal stimulus package, much larger than that seen earlier this year, is likely to be enacted early next year. Although given the US government’s already huge ...