Leading economists warn Brexit could lead to long-term damage
Nobel Prize winners write letter to the Guardian outlining fears for a Leave vote victory
- Group of ten includes LSE professor Christopher Pissarides
- Last-ditch attempt to persuade voters of the economic benefit of staying in EU
Ten of the world's leading economists have warned of the implications that a British exit from the European Union could have on its economy.
The United Kingdom is preparing for the historic referendum on Thursday to decide whether to stay within the bloc or leave it. A so-called "Brexit" vote has been labelled by many as an economic disaster for the UK.
The group of Nobel Prize winners wrote a letter to the Guardian expressing their fears about a potential Brexit, predicting uncertainty in how they will make trade agreements with other nations.
The United Kingdom is preparing for the historic referendum on Thursday
“Brexit would create major uncertainty about Britain’s alternative future trading arrangements, both with the rest of Europe and with important markets like the USA, Canada and China,” they write. “And these effects, though one-off, would persist for many years. Thus the economic arguments are clearly in favour of remaining in the EU."
Markets this week will no doubt react to the potential uncertainty of the economic future of Britain, especially as support for a Leave vote increases further in polls.
Professor Christopher Pissarides from the London School of Economics, one of the signatories of the letter to the Guardian, told the publication that investment and job creation would suffer considerably. A deprecation in the pound would lead also to, among other things, difficulties with Britons' holidays this summer.
“Britain will not thrive outside the EU,” Pissarides said. “The biggest negative impact will be felt over the next five years, but it will persist through the lack of investment and the weaker bargaining position that Britain will have in future negotiations.”
“Britain will not thrive outside the EU,” Pissarides said
Many banks have set up emergemncy rooms across London and senior bankers will be on call through out the early hours of Friday. Cash machines will be fully stocked and IT upgrades put off until the outcome of the vote is known to ensure that customers will not encounter any problems accessing their money.
The letter also addressed the issue of criticism of those in their field that accused economists of scare-mongering tactics. Pissarides said that it was absurd that campaigners were trying to refer to economists as irrelevant.
