Two Wake Forest University professors can offer different perspectives on Brexit today: one calls it a “disaster of monumental proportions,” other says there could be “long-term benefits.”
‘Brexit’ will be a disaster
David Coates, the Worrell Professor of Anglo-American Studies at Wake Forest University, is available today via phone to comment on Britain’s vote to exit the European Union. Born in the UK, he has written extensively on UK labor politics, contemporary political economy and U.S. public policy.
“This is an appalling self-inflicted wound,” said Coates. “the product of false claims by Leave campaigners about the limited costs of exit that will now begin to be exposed. The immediate situation will be costly – because of uncertainties (political – new government) and economic/financial (exchange rate, future of trade, etc). And the long-term situation will be worse. Why will foreign companies invest in the UK when the UK is no longer a base for them inside the EU? This is a disaster of monumental proportions.”
What effect will Brexit have on the U.S. economy? “This creates a big question mark for U.S. companies – how/where to invest, how to easily enter the EU?”
‘Brexit’ may not be all bad
Sandeep Mazumder, associate professor of economics and UK native, is available to comment today by phone or email on the possible long-term benefits to the UK’s ‘Brexit’ strategy. While the immediate impact is negative, the markets will likely settle.
Mazumder says there are three unknowns:
- Who will be the next Prime Minister and how will the markets respond?
- What kinds of trade agreements will be negotiated? Will the EU make an example of the UK?
- Will other countries follow the UK’s exit?
“There may be a sacrifice now with payoff in the future,” Mazumder says. “Europe is a bureaucratic nightmare when it comes to the decision-making process. The debate is not as black and white as people have made it out to be.”
Mazumder specializes in macroeconomics, monetary policy and international finance.
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Associate Professor of Economics
Mazumder is a specialist in macroeconomics.
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