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Teaching Economics

In the News

The falling £ and the circular flow

Graham Watson

25th September 2016

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A positive effect of Brexit as lower exchange rates have encouraged foreigners to spend more in post-Brexit Britain, at the same time that our tourists cut spending overseas. It is not a dramatic upsurge just yet but consider some of the effects on the basic circular flow of income and spending. A weaker exchange rate and the recent cut in policy interest rates to 0.25% by the Bank of England might turn out to be important shock absorbers in the wake of the June 2016 vote. Read more here.

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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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