What are markets telling us about the real meaning of Brexit?

This time around the UK was probably hurt somewhat; British stocks are down around 4% as I write. But French and German stocks are down 7% to 8%. The markets in southern Europe are down 10% to 15%. Brexit’s most powerful effect is to make the eurozone crisis worse, by increasing doubts as to whether the eurozone will stay together.

That is from Scott Sumner.  Here is David Beckworth’s analysis, he focuses on the contractionary effects of a strengthening dollar.

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