Investing large sum prior to brexit date?

DairyQueen

ZingPowZing wrote: »

Here is the Governor Of The Bank Of England on the merit having your currency in the toilet:

https://www.theguardian.com/business/live/2018/feb/21/markets-uk-unemployment-wages-interest-rates-mark-carney-bank-of-england-business-live

"Depreciations don't work; there may a variety of outcomes but it is essentially how a country makes itself poorer."

Oh Lordy, Mark Carney.... another crystal ball that spectacularly failed in the lead-up to the referendum. Another institution whose analysis is perfect when produced after the fact.

IMF, BBC, BoE - Project Fear personified.

AFAIK the UK has not deliberately depreciated sterling. Perhaps Mr Carney should consider supporting the £ with a hike in interest rates. But that, of course, would hit borrowers. The holy grail of current economics appears to focus on encouraging borrowing in order to keep individuals spending their future earnings.

Terron

ZingPowZing wrote: »

Well, it's like this:

A has ten coins
B has ten coins
B's coins are devalued
A is richer than B

The price of B's good are lower. More people start buying them. B makes more money through selling more and ends up richer than A after a bit of time passes.
https://www.bbc.co.uk/news/business-42633502
Though manufacturing is only a small part of the UK's economy the UK is still the nineth largest manufacturer by output and looks likely to move up, probably reentering the top five if current trends continue.

P.S. manufacturing is a significant part of the local economy where I live.

[Deleted User]

Yes, there may be side-benefits; just as, if you pay more income-tax, some may be spent on a road on which you may travel.

More immediately:

A has ten coins
B has ten coins
B's coins are devalued
A is richer than B

beamyup

When B goes on holiday to A's county, everything is expensive, causing B to holiday at home and therefore benefit his own economy.

A acts on a fantastic opportunity have a cheap holiday in B's country, and brings spend, increasing tourism profit/jobs.

It's great BBC style headline material - again and again over the last 3 years "pound crashed x% because of Brexit". If you were to add up all the x's i'm sure the currency would actually be worth nothing by now.

beamyup

This is worth a read on the subject.
"Economic effect of a devaluation of the currency"

https://www.economicshelp.org/macroeconomics/exchangerate/effects-devaluation/

buglawton

Short the Euro.