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The Economist - Buttonwood's notebook blog:
Britain faces Project Reality

27 June 2016

FRIDAY was the day when international markets absorbed the shock of the British vote to leave the European Union; a vote that few investors had anticipated. But today, market focus shifted back to the places where the vote is likely to have the biggest impact; on Britain and its European neighbours. ... And they are certainly right; it's not the moves in the markets, by themselves, that is important but what they signify for the economic outlook. Here is John Van Reenen of the LSE, writing for Vox:
The reasons to expect lower national income when the UK leaves the EU are well-established: prolonged uncertainty, reduced access to the single market, and reduced investment from overseas. Each of these would be highly likely, and the overwhelming weight of evidence is that each would be damaging for the living standards of UK households. As a result of the decision to leave, we should expect to see:
''Lower real wages; a lower value of the pound - and hence higher prices for goods and services; higher borrowing, lower public spending, or higher taxes; in the short run, higher unemployment''.

This article was published by The Economist - Buttonwood's notebook blog on June 27, 2016
Link to article here

Related publications
The complete set of CEP Brexit Analysis papers is available in one publication. Download from here.

Related links
John Van Reenen webpage
Growth Programme webpage

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