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Old 16-04-2016, 13:23   #1412
Bircho
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re: [Update] The UK votes to leave the EU

Quote:
Originally Posted by Ignitionnet View Post
Various governments have been having currency wars for the past few years in an attempt to cheapen their exports.

It should be noted that we import more than we export with regards to the European Union only. We have a positive current account with the rest of the world. Upon leaving the EU we would no longer be subject to the Common Customs Tariff which would reduce the cost of imports from outside the EU.

With those in mind I'd suggest the impact of Brexit is not black and white. There are far too many variables.

I'm sure if I could be bothered it wouldn't be hard to find plenty of 'experts' forecasting the UK's doom if we failed to join the Euro. The past few years seem to have tarnished the reputation of economics as a field in no small part because most economists don't seem to know backside from elbow when exposed to how things work outside of the classroom.
Except that 75% of our imports come from the EU and 25% from the rest of the world. Remember our exports to the EU is mainly services and in this sector we run a surplus of around £15 billion.
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