Economists, not the economy, are the only ones taking a battering from Brexit

AFF8879

A weaker pound certainly has benefits and presents many new opportunities...but let's not kid ourselves that it is better than a strong currency

LHW99

I seem to think that earlier in the year I read that the pound was overvalued by some 18% (can't remember where)
Also the BoE has been missing the 2% inflation target for years.

So now the pound is devalued and inflation is rising back to target.

Conrad

AFF8879 wrote: »

A weaker pound certainly has benefits and presents many new opportunities...but let's not kid ourselves that it is better than a strong currency

What is your definition of a strong currency?

In the months prior to the referendum the IMF urged Britian to devalue Sterling as its high value they said was making the UK less competitive in a world of currency wars and deflation (steel was the tip of the iceberg of course).

We've long berated our consumption based economy with a large trade deficit and too few exports.

globalds

ruperts wrote: »

Quite possibly, but those domestically produced products are already more expensive, so the consumer does not win.


A devaluation of a currency does have some advantages, that's why China does it to its own currency regularly. But those advantages are rarely felt by ordinary people. CEO's are no doubt delighted with the prospect of being able to buy more cheap UK labour. Their employees, maybe not so delighted.

I am glad you know the cost of so many items to be able to make such a bold statement about consumer prices.

Let's take holidays.
If the cost of going abroad goes up due to exchange rates.
It would have the consequence of making the staycation more attractive.
The UK holiday maker is then adding to the economy.

wotsthat

globalds wrote: »

Let's take holidays.
If the cost of going abroad goes up due to exchange rates.
It would have the consequence of making the staycation more attractive.
The UK holiday maker is then adding to the economy.

Having to holiday in the UK as a result of Brexit?

Funny the leave campaign neglected to highlight this 'benefit'.

HAMISH_MCTAVISH

globalds wrote: »

Let's take holidays.
If the cost of going abroad goes up due to exchange rates.
It would have the consequence of making the staycation more attractive.
The UK holiday maker is then adding to the economy.

But only at the cost of UK holiday makers being forced into a less attractive choice through their wealth and income being devalued.

I doubt the average Brit is particularly happy that the cost of a week in the Sun has now shot up so much, thanks to Brexit devaluing the pound, that it's priced many of them out of doing it.

That some B&B owner may now be better off from your dismal week in Skegness instead is scant compensation.

A country whose population are forced into buying inferior holidays, goods, services, thanks solely to their currency devaluing, is not better off for it.

mwpt

Conrad wrote: »

Germany's Opel which exports certain cars under the Vauxhall badge into the UK has today announced reducing hours and cutting thier workforce precisely because thier cars are now rendered less competitive whilst UK made cars are more competitively priced. Great news and another example of the aces we hold in the negotiation

We should continue to devalue the currency, it works wonderfully. I can't believe we were so stupid we didn't think of it before.

Conrad

mwpt wrote: »

We should continue to devalue the currency, it works wonderfully. I can't believe we were so stupid we didn't think of it before.

History tells us revolutionary change often requires a jolt, a catalyst. Brexit is just the detonator required to shift our deeply cancerous trade imbalance.

Bremoaners cry over a slight temporary drop in thier ISÀ or having to pay a bit more for their luxury holiday, well boo Fukien hoo

mwpt

Conrad wrote: »

History tells us revolutionary change often requires a jolt, a catalyst. Brexit is just the detonator required to shift our deeply cancerous trade imbalance.

I think we should aim for £1 buys 10 Euro Cents. We should be very competitive with that, just think of the windfall from exporters. Buy British. Don't buy from White Christian racist EU.

CLAPTON

HAMISH_MCTAVISH wrote: »

But only at the cost of UK holiday makers being forced into a less attractive choice through their wealth and income being devalued.

I doubt the average Brit is particularly happy that the cost of a week in the Sun has now shot up so much, thanks to Brexit devaluing the pound, that it's priced many of them out of doing it.

That some B&B owner may now be better off from your dismal week in Skegness instead is scant compensation.

A country whose population are forced into buying inferior holidays, goods, services, thanks solely to their currency devaluing, is not better off for it.

I guess you have always been an advocate of massive borrowing so that Brits can avoid enjoying holidays in this wonderful country.


what exactly is the correct value of the pound?