‘Brexit’ talk is already hurting the UK economy

UK Prime Minister David Cameron has promised to hold a referendum on Britain’s EU membership in 2017. Costas Milas argues that talk of an exit from the EU has been a hugely unnecessary distraction that has led to economic uncertainty and higher borrowing costs. He shows this by plotting the 10-year UK yield together with the Google trends search queries index for 'Brexit'. Policymakers in favour of continuing EU membership need to be vocal about why an exit would be harmful and the Bank of England should monitor Brexit talk in order to counteract its impact.

ESO: Background information: Leaving Europe would be bad for British business http://www.europeansources.info/record/leaving-europe-would-be-bad-for-british-business/

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