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Brexit is example number one but there are 101 other examples (including our approach to energy and our approach to "solving" the energy crisis). The USD is st
by LatteLazy 4y ago
Brexit is example number one but there are 101 other examples (including our approach to energy and our approach to "solving" the energy crisis).
The USD is strong, but that's only half the story here. Just look at EUR vs GBP since Brexit: down 20%. We're doing 20% worse than Europe, an economy with the same issues around energy as ours, plus no real decisive government and which just finished dealing with a debt crisis and a migrant crisis.
- robertlagrant 4y ago> Just look at EUR vs GBP since Brexit: down 20%. We weren't on the Euro when we were in the EU.
- LatteLazy 4y agoI didn't say we were did I? Sorry if I am being obtuse, I meant that a pound buys 20% fewer euros today than it did back then...
- robertlagrant 4y agoOh! But then how do you know what it would be if we'd stayed in?
- MattPalmer1086 4y agoYou cannot know the effects of something that didn't happen. I guess if we had some kind of multiverse-hopping machine we could do some experiments. If you're just saying that it is not possible to know for sure whether Brexit is the cause of the 20% decline, well, you're right. Seems like a reasonable hypothesis though.
- robertlagrant 4y agoMaybe not. But it's not been a 20% decline; the graph's been all over the place. In April 2022 the pound was higher against the Euro than it was when Brexit happened[1]. [1] https://www.google.com/search?q=gbp+to+euro https://www.google.com/search?q=gbp+to+euro (and set it to 5 years)
- MattPalmer1086 4y agoUm, if we were in the Euro, there would be no pound to euro rate to compare it with after Brexit! Think you may have misunderstood what was being said.
- robertlagrant 4y agoI was trying to understand what might've been intended given we don't know where it would've gone if we hadn't Brexited.
- jerf 4y ago"We're doing 20% worse than Europe" While your core conclusion may not change, you shouldn't do that; strength of currency is not a straight number you can use to measure the strength of an economy like that. GDP change would be better and I still think that one stinks too. Despite the use of the word "strong" it is definitely not the case that economies want their currencies to just be as "strong" as possible as you might think from the connotations of the word "strong".