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The long-term consequences of Brexit for the UK financial sector

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The long-term consequences of Brexit for the UK financial sector

Brexit: The potential for a financial catastrophe and long-term consequences for the UK financial sector

CAGE research associate Michael McMahon and his fellow colleagues on the panel for the Centre for Macroeconomics survey consider the short- and long-term effects of Brexit on the country's financial sector in their recent column published on VOXEu.

This column by Wouter den Haan, Martin Ellison, Ethan Ilzetzki, Michael McMahon, and Ricardo Reis finds that almost all think that a vote for Brexit would lead to a significant disruption to financial markets and asset prices for several months, putting the Bank of England on high alert. On top of the risk of a financial crisis in the near future, an unusually strong majority agrees that there would be substantial negative long-term consequences. No panel member expects the overall consequences of a Brexit outcome to be beneficial for the UK economy – the first time since this survey began that one side of the argument is supported by none of the respondents.

Click here for the full VOXEu article http://voxeu.org/article/cfm-survey-june-2016-brexit-and-city