Did Brexit break the bank?

• Swati Dhingra
• 10 Jul 2019

CEPR Fellow Swati Dhingra, LSE, looks at what Brexit tells us about the contribution of globalisation to the productivity and wage stagnation we see across the developed world.
Following the Brexit vote, sterling suffered the biggest depreciation ever experienced by the 4 biggest currencies. With companies finding that products they bought from outside the UK increased in price sometimes by as much as 8% overnight, those industries most reliant on products from abroad saw the biggest cuts in wages and also cut back in job-related training and education for their workers.