Does Post-Brexit Pound Deserve Safe Haven Status?

The video discusses the liquidity of currencies, focusing on Sterling's role in a cash-driven environment. It explores the investment interest of sovereign wealth funds in the UK, despite Brexit, due to institutional safety and currency adjustments. The potential positive impact of Bank of England's stimulus on Sterling is examined, alongside fiscal policies proposed by Phillip Hammond. The discussion concludes with the importance of a balanced fiscal policy to stimulate demand and economic growth.

What is one reason why Sterling is considered a reliable currency in the current environment?

• It provides sufficient liquidity.

• It is the most traded currency.

• It has a high interest rate.

• It is backed by gold.

Why do some sovereign wealth funds choose to invest in the UK?

• Because of high returns on investment.

• Due to the UK's institutional safety.

• To avoid currency fluctuations.

• For exclusive access to the EU market.

How might the Bank of England's stimulus measures affect Sterling?

• They could strengthen Sterling.

• They could make Sterling obsolete.

• They might have no effect.

• They could weaken Sterling.

What is a potential consequence of growth surprising to the upside in the UK?

• A rise in unemployment rates.

• A decline in the value of Sterling.

• A decrease in foreign investment.

• An increase in foreign capital flow.

What is essential for the government to stimulate the economy effectively?

• Maintaining a high budget deficit.

• Generating demand through spending.

• Reducing all government spending.

• Increasing taxes significantly.