Measuring Currency Contagion Risk of Pound Selloff

The transcript discusses the market reactions to Brexit, highlighting the sell-off of the pound and the potential for further declines. It notes the lack of evidence for significant investor outflows from the UK ahead of the vote. The contagion effect on European currencies, particularly less liquid ones, is also discussed. Speculation about the EU's future post-Brexit is addressed, with some officials calling for more flexibility. The potential for policy responses from the Bank of England, ECB, and BOJ is considered, with easing measures likely to be on the table to address economic uncertainties.

What comments have been made by French officials regarding the EU's approach post-Brexit?

What are the implications of political uncertainty on investment decisions as discussed in the text?