As demand and supply would both drop after a no deal Brexit, it’s not obvious how policy should respond. But our view that the drop in demand would last longer than any fall in supply suggests the focus should be on stimulating demand. And even in the moment when it’s not clear what’s happened, it makes sense for policymakers to err on the side of caution by loosening policy rather than tightening it.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services