Economics of Brexit

Why the European Court of Justice isn’t going away

One of the most contentious issues in Britain’s exit from the EU is the role of the European Court of Justice (ECJ) during and after Brexit. This is because Brexit is ultimately a question of sovereign authority. Who decides the rules of the game when things go awry: a UK judge, or their EU counterpart? Davor Jancic examines the […]

  • Permalink Gallery

    Brexit should make it easier to address the Eurozone’s challenges

Brexit should make it easier to address the Eurozone’s challenges

Annette Bongardt and Francisco Torres recall that the Eurozone risked seeing its legitimate efforts to strengthen the EMU vetoed by the UK, a country with a derogation from the monetary union. They argue that had ‘Remain’ won, the prospects for completing and sustaining the EMU would have worsened and dissatisfaction with the EU would have increased. In their view, […]

Post-Brexit Britain should cotton on to an opportunity to transform global trade

Brexit should be viewed as an important opportunity for fresh thinking about trade and development policy, argue Richard Baldwin, Paul Collier and Richard Venables. EU economic and trade policies were far from perfect, and Britain has the chance to lead the way in devising a fairer set of policies that help development in Africa and the Caribbean, while helping […]

  • Permalink Gallery

    Brexit, competition and markets: there’s a need to spread the benefits of growth

Brexit, competition and markets: there’s a need to spread the benefits of growth

London and the South-East plus metropolitan and major university towns are markedly more pro-market and pro-competition than much of the rest of the UK. This is reflected in the geographical pattern of Brexit referendum results. In this post, Jon Stern examines the future of competition policies, as well as the perceptions of fairness and legitimacy of pro-market competition and industrial policies […]

  • Permalink Gallery

    LSE Growth Commission: despite Brexit, the UK should stay open to international talent

LSE Growth Commission: despite Brexit, the UK should stay open to international talent

As a Research Economist at LSE’s Growth Commission, Anna Valero spent part of the post-Brexit months studying the gaps between public policy and the new economic reality in the UK.  In an interview with LSE Business Review’s managing editor, Helena Vieira, she discusses what the UK could do stimulate economic growth and fight inequality. The skills gap is one of her key points, […]

  • Permalink Gallery

    Brexiteers hope to rebalance the economy towards exports, but this may prove a naïve myth

Brexiteers hope to rebalance the economy towards exports, but this may prove a naïve myth

Michael Ellington and Costas Milas explain why we should expect persistent exchange rate volatility and higher borrowing costs once the formal notification is sent to the EU. In this uncertain environment, the likelihood of rebalancing the economy towards export-oriented sectors may prove to be another pro-Brexit myth.

The second of the seven principles set out by Theresa May in her […]

What would a pro-European hard Brexit look like?

Like it or not, Britain is leaving the single market. But there is still plenty to play for, argues Simon Hix. With a deep and comprehensive free trade agreement, we could limit the economic damage. This probably means accepting some EU regulatory standards and devising a scheme to allow EU citizens to work in the UK (and vice versa) if […]

  • Permalink Gallery

    Article 50 may lead to a decisive fork in the road for the UK

Article 50 may lead to a decisive fork in the road for the UK

Article 50 may lead to a decisive fork in the road for the UK. The final Brexit agreement “must take account of the framework for its [the UK’s] future relationship with the EU.” Therefore, the government has two years, realistically eighteen months, to redefine our international relationships. These relationships have a direct correspondence on our economy, creating winners and […]

Don’t hobble post-Brexit Britain by throwing away Single Market membership

The UK economy has been resilient so far, but faces challenges that a falling exchange rate and monetary expansion have only postponed. Outside the Single Market, trade will be more difficult. And even if – optimistically – the resulting likely fall in growth is short-lived, it takes a surprisingly long time to make up a short-term loss. Nicholas Barr explains why the […]

  • city of London
    Permalink Photo: <a href=Aurelien Guichard via a <a href="https://creativecommons.org/licenses/by-sa/2.0/".CC-BY-SA 2.0 licence" />Gallery

    The biggest threat to the City of London is now uncertainty

The biggest threat to the City of London is now uncertainty

Uncertainty is now the biggest threat to the City of London, writes Simeon Djankov. It is not simply a question of whether changes to financial regulation will deter business, but whether the government can deliver on its promises to cut corporate taxes, reform immigration while letting in talent and make corporations more transparent without putting off foreign investors. In […]