Credit: Some brighter news on the ongoing Brexit developments from the UK Telegraph
(I'll be charitable and ignore their typo (also my glass house is not good at withstanding stones): Britain should embrace weaker pound and it needs to fall further, says former BoE govenor and currency guru
Ashoka Mody, the IMF's former deputy-director for Europe and now at Princeton University:
- "The idea that Britain is in crisis or is on its knees before the exchange rate vigilantes is ludicrous"
- "The UK economy is rebalancing amazingly well. It is a stunning achievement that a once-in-fifty-year event should have gone to smoothly" he told the Telegraph
- said the pound had been driven up to nose-bleed levels from 2011 to 2015 ... causing serious damage to Britain's manufacturing base and long-term competitiveness
- pound was 20pc to 25pc overvalued in trade-weighted terms before the Brexit campaign got underway, based on classic IMF measures of the real effective exchange rate (REER).
And, more from Lord King, former Governor of the Bank of England:
- "During the referendum campaign, someone said the real danger of Brexit is you'll end up with higher interest rates, lower house prices and a lower exchange rate, and I thought: dream on. Because that's what we've been trying to achieve for the past three years and now we have a chance of getting it.
- "I don't think we should fear [Brexit]. It's not a bed of roses, but nor is it the end of the world"
The article is here and should be accessible , though sometimes the Tele is gated
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I've posted on the falling GBP repeatedly .... most recently on Friday: Brexit. Best currency war weapon. Ever.
The lower pound is a big positive for the UK.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
