Economics of Brexit

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    No-deal Cabinet: time for another Bank of England stress test

No-deal Cabinet: time for another Bank of England stress test

With the new Cabinet made up of ‘Vote Leave veterans and right-wing free marketers’, Costas Milas discusses how the Bank of England may want to respond.

Evan Esar quipped in his Comic Dictionary that statistics is ‘the only science that enables different experts using the same figures to draw different conclusions’. This definitely applies to the notorious Brexit divorce bill […]

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    Brexit behaviourally: which do you think is the bigger figure – £350m a week or £4,300 per household per year?

Brexit behaviourally: which do you think is the bigger figure – £350m a week or £4,300 per household per year?

The Leave campaign’s ‘£350m a week’ figure cut through to voters in the 2016 referendum, while the Treasury’s ‘£4,300 per household per year’ didn’t. Was the relationship between the two figures intuitively self-evident? One is six times bigger than the other. Tessa Buchanan (University College London) looks at some of the behavioural lessons that can be learned from the campaign.

Psychologist Daniel […]

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    The impact of Brexit on Australia’s trading relations with the UK and EU

The impact of Brexit on Australia’s trading relations with the UK and EU

If the UK is to use Brexit as an opportunity to negotiate new trade agreements with other states outside of Europe, then Australia arguably represents one of the best examples of a future partner. Yet the Brexit referendum also coincided with renewed attempts to develop closer trade relations between the EU and Australia. Laura Allison-Reumann, Margherita Matera and Philomena […]

How the financial industry and the law firms that support it are preparing for Brexit

The three years since the referendum have given the financial sector plenty of time to prepare for Brexit, writes Rebecca Christie (Bruegel). Thousands of lawyers have registered to practise in Ireland and firms are using Brexit as a chance to diversify, relocating some services elsewhere in the EU.
The UK is leaving the European Union, in spirit if not in […]

What the UK population will look like by 2061 under hard, soft or no-Brexit scenarios

With the British parliament still deadlocked, the UK’s future Brexit strategy is not yet set in stone. Whatever path the UK chooses from here will have an impact on the future of British immigration policy – and therefore on the size of the population, write Nik Lomax, Paul Norman, Philip Rees (University of Leeds) and Pia Wohland (University of […]

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    Losers’ consent and Brexit: the distinction between ‘graceful’ and ‘sore’ losers

Losers’ consent and Brexit: the distinction between ‘graceful’ and ‘sore’ losers

Why do some voters accept their defeat and agree to a democratic verdict while some do not? Richard Nadeau, Éric Bélanger, and Ece Özlem Atikcan focus on losers’ consent in the Brexit referendum.

In the protracted aftermath of the 2016 Brexit vote, more than 4.1 million UK citizens signed a petition in early 2019 calling for a second referendum on […]

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    Less energy for the energy sector? There is major disruption ahead to both the UK and the EU energy markets

Less energy for the energy sector? There is major disruption ahead to both the UK and the EU energy markets

Alexandra-Maria Bocse (LSE) looks at the impact of Brexit on investment in renewables, on energy efficiency and on connections between the EU and the UK energy markets. She writes that the negative implications of Brexit for the UK will require policy responses.

The uncertainty surrounding Brexit made the UK a less attractive market for renewable energy investors. The business and […]

How the post-Brexit pound has hurt Britain’s workers

The unexpected result of the Brexit referendum, working through the rapid depreciation of sterling, has hurt British workers. Rui Costa, Swati Dhingra and Stephen Machin (LSE) show that the big drop in the value of the pound caused a rise in import prices, which has led to a fall in both wages and training for workers employed in the […]

WTO rules OK? Not any more

Many Brexiteers see the WTO as a desirable framework for the UK’s trade. Donald Trump dislikes it. Steven Woolcock (LSE) explains how the WTO has been undermined by outdated rules, US trade policy and China’s support for its own industries. It looks like rather a poor alternative to negotiating agreements with major markets.

Two developments are seen as evidence of […]

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    Long read: Does the EU stop Britain from using state aid to help its economy?

Long read: Does the EU stop Britain from using state aid to help its economy?

Some argue that when it is no longer constrained by the EU’s state aid rules, Britain will be able to pursue a more interventionist economic strategy. Kitty Stewart (LSE) asks whether this claim stacks up.

A series of EU regulations restrict state intervention in the economy in EU member states, including complex state aid rules aimed at promoting competition. The original […]