Sterling to Slump in No-Deal Brexit

The video discusses a survey conducted among banks regarding the potential impact of a no-deal Brexit on the British pound. It highlights historical pound levels, particularly post-Brexit vote, and examines the rising tail risks associated with political turmoil in the UK. The discussion includes the probability distribution of Brexit outcomes, emphasizing the dissatisfaction with current plans and the potential for a hard Brexit scenario.

What level could the pound potentially drop to in a no-deal Brexit scenario, according to the survey?

• 1.30

• 1.10

• 1.15

• 1.25

What is the median risk percentage of a no-deal Brexit according to the survey?

• 40%

• 20%

• 10%

• 30%

Which factor is contributing to the rising risk of a no-deal Brexit?

• Economic growth

• Internal party turmoil

• Public opinion

• International trade agreements

What is the Checkers plan criticized for?

• Being too favorable to the EU

• Not satisfying any political group

• Being too complex

• Lacking economic benefits

What are the two polarized options discussed in the context of Brexit?

• Staying in the EU or leaving without a deal

• Joining the Eurozone or adopting a new currency

• Staying in the customs union or a harder Brexit

• Forming a new trade agreement or maintaining the status quo