Frenkel: Post-Brexit Europe Needs U.K. Capital Market

The video discusses the dynamics of the UK's current account deficit, highlighting concerns about its sustainability if it becomes too large or prolonged. Despite initial doomsday predictions, the world and Europe have not collapsed. The discussion emphasizes the mutual need between Europe and the UK capital markets, suggesting that common sense will guide future negotiations.

What is the main concern regarding the UK's current account deficit?

• The influence on currency exchange rates

• The effect on local businesses

• The depth and duration of the deficit

• Its impact on global trade

Why are prolonged and large current account deficits considered unsustainable?

• They can destabilize the economy

• They result in higher interest rates

• They cause a rise in unemployment

• They lead to increased inflation

How did the initial predictions about the UK's current account deficit compare to the current situation?

• The predictions underestimated the deficit

• The predictions were overly optimistic

• The predictions were accurate

• The predictions were overly pessimistic

What realization is beginning to emerge regarding Europe and the UK capital market?

• Europe can thrive without the UK

• The UK does not need European markets

• Europe needs the UK capital market

• The UK should focus on other markets

What is the speaker's hope for the future of UK-Europe negotiations?

• That negotiations will be postponed

• That common sense will prevail

• That Europe will impose strict regulations

• That the UK will dominate the negotiations