econintersect .com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 30 December 2017

Brexit Through The Gift Shop: No Refunds

from the Dallas Fed

-- this post authored by Michael Sposi and Kelvinder Virdi

Britain voted to leave the European Union (EU) on June 23, 2016, setting the stage for the government to notify the EU of its intention to withdraw from the trade bloc by March 2019. While British voters were optimistic that greater protectionism would provide a gift of improved economic well-being, theory suggests otherwise.

Brexit, the common term for the United Kingdom’s departure from the EU, will likely significantly affect trade, foreign direct investment and immigration between Britain and much of the continent.

While Brexit will result in new policies, trade is likely to be among the most apparent changes, with the possibility of new barriers affecting economic activity and welfare. The U.K.’s negotiation with the EU and affiliated countries regarding new trade rules will determine Brexit’s economic ramifications. As an EU member, the U.K. has access to the European Single Market and largely duty-free trade.

If officials cannot reach an agreement with the EU by March, they may have to fall back on the tariffs and quotas set by the World Trade Organization (WTO) - a scenario often referred to as “hard" Brexit.

Assuming that the U.K. leaves the EU B Brexit Through the Gift Shop: No Refunds by Michael Sposi and Kelvinder Virdi and a new regime of tariffs follows, higher trade costs could mean the average U.K. household will incur an added expense of about 428 pounds or $580 in 2016 prices, analysis suggests. In aggregate, the EU will experience much milder overall effects that equate to a 0.10 percent loss in welfare. Non-EU members will not be meaningfully affected. Even if the U.K. and the EU enter a free-trade agreement in the future, Brexit will impose short-run losses.

[click on image below to continue reading]

Source

https://www.dallasfed.org/~/media/documents/research/eclett/2017/el1715.pdf

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Contributors








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government




























 navigate econintersect .com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved