Tom Keene and Francine Lacqua of Bloomberg interview Mervyn King post the Brexit vote. What I liked about the interview is that King says explicitly that the UK politicians exaggerated the impact of the leave vote. In another interview to BBC, he said explicitly that the UK Treasury exaggerated. He also criticizes the assumptions people made when putting out the numbers.
click picture to open the video on Bloomberg’s site
When Tom Keene asks him what he says as a “card carrying member of the UK elite” on what people think of common people, Mervyn King says that the UK political class has lost touch with them and has alienated them and were not allowed to discuss certain issues.
This is not a lefty or a socialist saying all this, this is Mervyn King. This goes on to prove that the UK left is clueless about economic impacts of their own ideas. There was hardly any noise against the remain camp.
Even heterodox economists supported remain!
He even says the fall in the pound is not a cause for concern as it can do good for UK trade. Which is a good point. What matters is expectations of the exchange rate more than the exchange rate itself for alarm and now expectations have stabilized.