Brexit as Black Swan?: Currency, Confidence, Credit Shock

The video discusses the potential impacts of Brexit on UK companies, focusing on exports and access to the single market. It explains how Brexit effects are modeled, including currency, confidence, and credit shocks. The implications for the US economy are considered modest, with potential slower growth and a shift in rate hikes. Challenges in modeling Brexit are highlighted due to its unprecedented nature. The Bank of England's perspective on inflation and growth is discussed, emphasizing the trade-offs involved. Medium-term effects on productivity and trade are also explored.

What challenges does the Bank of England face in response to potential Brexit outcomes?

Discuss the potential supply-side effects of Brexit on productivity and growth.