02 June 2023

Bloomberg: Larry Summers Sees UK Recession After ‘Historic Error’ on Brexit

Larry Summers has said he would be “very surprised” if the UK gets through the next two years without a recession.

The former US Treasury Secretary said Brexit and post-pandemic monetary policy in the UK have exacerbated problems in the economy that are “frankly more acute than they are in most other major countries.”

“The UK economic policy has been substantially flawed for some years,” Summers told BBC Radio 4’s Today Program on Thursday.

“Brexit will be remembered as a historic economic error that reduced the competitiveness of the UK economy, put downward pressure on the pound and upward pressure on prices, limited import goods and limited in some ways the supply of labor — all of which contributed to higher inflation.”

These errors were “reinforced by very ill-judged monetary policy,” Summers added, which was “too expansionary for too long.”...

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