Watt: Pound Violence Is Investors Caught on Wrong Side

The video discusses the unexpected market reactions following a Brexit scare, highlighting the volatility in the currency market and the belief in poll momentum. It examines the economic implications, including GDP dynamics and inflation concerns, and considers the role of central banks in maintaining financial stability. The discussion also touches on the potential for central banks to prioritize domestic issues over global coordination.

What was the initial market reaction to the Brexit referendum outcome?

• The currency strengthened significantly.

• The currency weakened significantly.

• There was no change in the currency value.

• The currency value doubled.

Which factor was believed to drive inflation in the UK before Brexit?

• Stable currency value

• Growth in wages

• High unemployment rates

• Decrease in demand

How might a substantial business shock affect the UK economy post-Brexit?

• Increase in employment

• Decrease in demand

• Increase in currency value

• Stable inflation

What is the primary focus of central banks in the aftermath of Brexit?

• Decreasing inflation

• Increasing interest rates

• Strengthening the currency

• Maintaining financial stability

What is the expected response of central banks if the global economic outlook worsens?

• Ignore economic changes

• Attend to domestic constituencies

• Focus on international agreements

• Increase global trade