No economy is an island

If you believe Mark Rutte, the prime minister of the Netherlands, the Brexit vote has plunged Britain into chaos. The UK, he concluded a few days after the referendum, “has collapsed politically, ­monetarily, constitutionally and economically”.

I can’t speak to politics or the constitution; but monetarily and economically, this view is wrong (or at least incomplete) in one crucial respect. It fails to see that no country’s economic fate is determined unilaterally. What happens next elsewhere – and in the eurozone especially – will be just as important as what happens in the UK.

In my latest Real Money column for the New Statesman, I discuss why.  You can read it here.

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