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Brexit and the J Curve Effect

Level:
A-Level, IB Diploma
Board:
AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 21 Mar 2021

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The external value of the pound has been falling since the referendum vote to leave the European Union. But, so far, there is little sign of an improvement in the UK trade balance in goods and services. This is mainly because depreciations take time to sink in to help export sales and also that import prices have risen and fed through quickly into higher spending on overseas products such as imported foodstuffs and energy. Are we seeing a J curve effect at work as we head into 2017?

Brexit and the J Curve Effect
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