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The devaluation is a defensible policy, in many situations a proper vehicle to protect common folk from economic shock. There is a world of difference between loosing 20% of your income and losing your job.

The problem here is the widening of the trade deficit at the same time. This means Sterling is not venting all the pressure building in the system.


by Luis de Sousa (luis[dot]de[dot]sousa[at]protonmail[dot]ch) on Mon Aug 21st, 2017 at 01:10:37 PM EST
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Yes, devaluation s a sensible policy from the UK point of view, but from an Irish/EU perspective it risks devastating industries dependent on exporting to the UK or competing with UK exports in EU markets in a customs & tariff free environment. Tariffs, whether WTO or otherwise, cannot come quickly enough if they are to survive in an environment where UK goods suddenly have a 30% cost advantage. Another reason why an A50 extension is unlikely.

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by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Aug 21st, 2017 at 05:07:08 PM EST
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