We have our independence, now let the pound fall and boost exports
http://www.telegraph.co.uk/...6/26/we-have-our-independence-now-let-the-pound-fall-and-boost-export/
One major consequence of Brexit that could have a significant impact on the economy is what has happened to the pound. This has been widely portrayed as some sort of disaster. The truth is exactly the opposite. The lower pound will help to improve Britain’s trade balance, and that will boost our GDP, thereby encouraging investment.
Given this, and given the current extremely low rate of inflation, the Bank of England should not make any attempt to protect the pound. Indeed, the greatest policy challenge it will face over the next year or two is how to keep the pound down to its new competitive level. It should be prepared to reduce interest rates and even to restart the QE programme, if necessary.
What’s more, under no circumstances should the Chancellor embark on a renewed bout of fiscal tightening. Of course, if the economy performs just as well as before, or even better, helped by the low pound, then there is no reason for the public finances to deteriorate. But if the economy does slow markedly and the government deficit widens, the Chancellor should simply accept this.
There is a case for fiscal action – but of a very different sort. As well as a programme of deregulation, we now also need a plan for even lower corporate tax rates. Both of these will take time to be developed, but there is a lot to be gained by announcing soon the direction of travel.