The ripples of the UK’s 23 June vote to leave the European Union are spreading internationally. Sterling, the third most important reserve currency, has fallen by more than 10% against the dollar, interest rate rises everywhere have been put on hold, and one more source of risk is stalking the global economy. Disarray in Britain’s political ranks throws up a 21st century version of The Comedy of Errors.
One important side effect: Theresa May, the quietly confident UK home secretary, is favourite to take over in September from departing Prime Minister David Cameron – joining Angela Merkel, Christine Lagarde and Janet Yellen in a march of female economic power.
The July-August edition of the Bulletin analyses the ramifications of the EU’ biggest setback since it was set up in 1958 as the six-member European Economic Community. Niels Thygesen in Copenhagen, Philippe Lagayette in Paris, Stuart Mackintosh in Washington and Jacques Lafitte in Brussels provide views from Europe and the US. Peter Warburton and Federico Corrado investigate the post-referendum challenge for Swiss monetary policy. Ben Robinson describes how emerging market central banks, in particular the People’s Bank of China, are reacting to European upheavals.
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