UK Post Brexit Can Fix Labor Market, Attract More Foreign Investors

UK post Brexit can fix Labor Market, Attract more Foreign Investors: Financial Theorist Pete Kyle

SMITH BRAIN TRUST — June 24, 2016 — Even though financial markets have “kind of shuttered from Britain voting to exit the European Union, it’s not clear a huge amount of economic dislocation will result,” says finance professor Albert “Pete” Kyle at the University of Maryland’s Robert H. Smith School of Business.

“A weaker pound and weaker euro would make exports more competitive and make housing in the UK cheaper, and that would attract – not deter – foreign investors,” he says. “And the lower interest rates we’ve been having, with bond prices rising, will tend to stimulate growth.”

Brexit – No Punishment from EU

Given the political environment on the...