THE BREXIT VOTE, INFLATION AND U.K. LIVING STANDARDS
| Autor: | Elsa Leromain, Thomas Sampson, Holger Breinlich, Dennis Novy |
|---|---|
| Přispěvatelé: | UCL - SSH/LIDAM/IRES - Institut de recherches économiques et sociales |
| Rok vydání: | 2021 |
| Předmět: |
Inflation
HC Economics and Econometrics Public economics media_common.quotation_subject Depreciation HC Economic History and Conditions HF Commerce Monetary economics Standard of living JN101 Great Britain Exchange rate Brexit Referendum Unemployment Economics media_common.cataloged_instance European union health care economics and organizations media_common |
| Zdroj: | International Economic Review, Vol. 63, no. 1, p. 63-93 (2022) |
| ISSN: | 1468-2354 0020-6598 |
| DOI: | 10.1111/iere.12541 |
| Popis: | This paper studies how voting to leave the European Union affected living standards in the United Kingdom. Using heterogeneity in exposure to import costs across product groups, we analyze how the depreciation of sterling caused by the referendum affected consumer prices. We find the Brexit depreciation led to higher inflation in product groups with greater import shares in consumer expenditure. Our results are consistent with complete pass-through of the cost of imports to consumer prices and imply aggregate exchange rate pass-through of 0:29. We estimate the Brexit depreciation increased consumer prices by 2:9 percent, costing the average household £870 per year. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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