Brexit: Modeling U.K. and EU Economic Pain

The transcript discusses the potential impact of Brexit on the UK economy, predicting a 2-7% decrease in GDP. The Bank of England's role in mitigating this decline through financial measures, including potential rate cuts, is highlighted. The discussion also covers the channels through which Brexit might affect the economy, such as confidence and currency. Additionally, the challenges faced by the ECB and the political response required in the EU are addressed.

How might Brexit affect the confidence and sentiment in financial markets?

What are the potential political implications of Brexit for the euro area?