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#1
23-10-2016, 12:40 PM
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Serious weak stirling doesn't mean UK's economy will get betterer...
An honorable member of the Coffee Shop Has Just Posted the Following:
in order for currency depreciation to work its magic, more demand for exports must be forthcoming when the exchange rate falls (or, as economists say, the price elasticity of demand for exports must be high). But various studies have shown that the price elasticity of demand for UK exports is low. For example, a recent paper by Francesco Aiello, Graziella Bonanno, and Alessia Via of the European Trade Study Group finds that “the long-run level of exports appears to be unrelated to the real exchange rate for the UK.” Click here to view the whole thread at www.sammyboy.com. 
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