We examine the relationship between government partisanship, interest rates and the mean and volatility of stock prices in the United States and United Kingdom. We suggest that traders in the stock market rationally expect higher (lower) post-electoral interest rates during the incumbency of the...

The relationship between democracy and globalization has been a subject of both scholarly and policy debate. Some argue that the two go hand in hand - that unrestricted international transactions encourage political accountability and transparency and that politically free societies are least...