Do Central Banks Have Tools to Deal With a Brexit?

The transcript discusses the potential economic ramifications of Brexit, highlighting the limitations of current monetary and fiscal policy tools compared to those available during the great financial crisis. It explores the debate around monetary policy responses, such as interest rate cuts or hikes, and the challenges posed by political polarization. The discussion emphasizes the need for expansive fiscal policy to counteract economic issues but notes the political obstacles in implementing such measures.

What is the significance of capital flight in the context of the monetary policy debate?

In what ways does political polarization affect economic policy responses according to the text?