Ryan Randall plays the bagpipes outside a polling station in Edinburgh, Scotland, in this Reuters picture. Brexit was fought on emotional grounds rather than on hard core economics or political realities British voters choosing for leaving EU
Monday, 27 June 2016
In the recently-held referendum, the British people decided by 52 to 48 that Britain should leave the European Union. In popular jargon, this was a choice in favour of Brexit or Britain’s Exit from EU. However, Brexit was fought on emotional grounds rather than on hard core economics or political realities.Given the track record of British voters in the past, many had expected that they would go for a rational choice. That rational choice required them to compare the costs and benefits of Brexit before making their choice. The material placed before the voters by campaigners for remaining in EU too had urged them to make their choice considering the enormous economic costs of Brexit.
However, it was only the voters of Scotland, Northern Ireland and a section of London who had acceded to that request. The rest of the voters had chosen Brexit and, accordingly, Britain will leave EU formally within a timeframe of two years.Bank of England’s
undented reputation reverses market decline
When the results were pouring in and it was clear that Brexit would be carried, the Sterling Pound came under pressure in international markets. It immediately fell from $ 1.45 per Sterling Pound to $ 1.33 or by about 10%. Analysts who had relied on a prediction of George Soros, International Fund Management Guru, forewarned that it would fall to as low as $ 1.20, the parity with Euro. But it did not happen.
That was because, when the markets were open on Friday morning, Bank of England Governor, Mark Carney, appeared before the press and gave an assurance. He told the markets throughout the globe that the Bank, along with the U.K. Treasury, would take necessary action to restore normalcy. Markets believed Governor Carney more than Soros. Why? Governor Carney had an undented reputation as a tough central banker, a reputation which he had earned while he was the Governor of the Bank of Canada.
Besides, the Cameron administration had, through unpopular fiscal measures, tamed the uncontrollable British Budget allowing space for the government to intervene in the economy without building inflationary pressures. Hence, though there are economic costs, the economic fallout is expected to be corrected over the next few years.
UK Universities and research programmes are unintended casualties
