Brexit: why uncertainty is bad for economies

Abstract

The predicted economic blow of a Brexit vote was core to the Remain campaign before Britain’s referendum on EU membership. Since the vote, the lack of an “Armageddon” has been held up as an example of these fears being overblown. In reality, it is likely to vary significantly across society, affecting people and businesses in different ways. In particular, there is the more nebulous, long-term effect of uncertainty to take into account.