The Bank of England and Brexit Lies: Who is Right?
A press release from a large financial group quotes their CEO saying Nigel Farage's 'Brexit lies' are largely responsible for the current sticky inflation. What is the truth behind this claim? Read on to find out.
Frances 'Cassandra' Coppola
Always right, never believed. Broke centrist remoaner who writes and speaks about finance and economics. Professional singer. Legacy Blue Tick. Autistic.
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In my inbox today, a press release from a large financial group quotes their CEO saying Nigel Farage's "Brexit lies" (yes, that's a direct quote) are largely responsible for the current sticky inflation.
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023 -
Why did he do this? Because Farage blamed the Governor of the Bank of England for inflation.
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023 -
So who is right - Farage, or the CEO of this company? Well, both, really. The Bank of England has responded far too late to this inflation and as a result has had to take far more drastic action than might have been needed had they responded sooner. And...
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023 -
...the pandemic monetary stimulus probably has contributed to inflation, though imho it is not the primary cause (unlike the US). But...
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023 -
Imho the CEO of that company is right to pin the blame for Britain's high inflation relative to other developed countries on Brexit. Brexit has made exporting (esp services) more costly, which inhibits our ability to mitigate the terms-of-trade shock by exporting more. And...
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023 -
...I think the CEO is right to highlight the end of free movement with the EU as the primary cause of the UK's extremely tight labour market. The Govt would have us believe a rise in economic inactivity mainly among over-50s is the main cause. I don't believe it....
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023 -
And the reason I don't believe it is that the labour shortages are not in sectors where over-50s tend to work. They are in food production, delivery driving, hospitality, care - all sectors previously populated by EU migrants.
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023 -
I'm glad to see the Brexit "omerta" has ended and people are now openly saying it is lies - which it always was, from the start. Farage is a liar. So is Johnson. But they are not the only Brexit liars.
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023 -
It's all very well calling Farage and Johnson liars, but they are not in power. The problem is the Brexit liars who ARE in power, and in particular Sunak, who was Chancellor under Johnson. Hold him to account for the terrible mess he has made of the British economy.
— Frances 'Cassandra' Coppola (@Frances_Coppola) June 23, 2023