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The falling £ and the circular flow

Graham Watson

25th September 2016

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.

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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