David Blanchflower, professor of economics at Dartmouth College USA, on Friday said it's hard to see any major benefits from 'No-Deal Brexit' after Queen Elizabeth II approved Prime Minister Boris Johnson's advice to cut down the number of days parliament will meet before Britain is due to leave the European Union on October 31.
In an interview to CNBC-TV18's Parikshit Luthra, the former member of the Monetary Policy Committee Bank of England said, "Perhaps a little early to tell, but at the moment the markets did not respond that much to what happened yesterday with provoking of the parliament. It is clear the Vote for Brexit has had a big impact on the Pound and I think certainly think that now the evidence is that the UK appears to be in recession."
He added, "The labour market appears to be turning, I don’t think any of the political developments have been good for economics at the time when the global economy is slowing so that is the implications. This chaos is going to make it very hard for them to manage things, not least till they have to appoint a new governor of the Bank of England and who in the heck is going to do that job."
When asked what is the short-term, medium-term and long term impact of a No-Deal Brexit, he said, “For an economist, it is really hard to see any major economic benefits from No-Deal Brexit. We have come down to a belief that this about a cultural issue, it is an issue of sovereignty. The transition period is likely to be very long and difficult."