Larry Summers, the former US Treasury Secretary, has branded Brexit as a ‘historic blunder’ that has sparked inflation.
The renowned economist criticized the UK’s exit from the European Union as a misguided decision that adversely impacted global competitiveness and the availability of labour.
Summers further cautioned that Britain is likely to plunge into a recession within the coming two years.
During his interview on BBC Radio 4’s Today Programme, Summers remarked, “Brexit will be etched in history as an economic blunder that diminished UK’s competitiveness, triggered a depreciation of the pound, and caused a surge in prices, restricting imports and, in some ways, the labour supply. This, in turn, resulted in heightened inflation.”
Britain currently has the highest inflation rate among the G7 nations, with consumer price growth persistently surpassing the predictions, standing at 8.7% in April.
Summers further criticized the UK’s economic policies, stating, “UK’s economic strategy has been considered flawed for a while now.”
The ex-Treasury Secretary, who has occupied some of the most influential roles in the field of economics, also condemned the decision-makers at the Bank of England for the country’s soaring inflation.
Summers stated that the UK’s predicament had been “exacerbated by gravely misjudged monetary policies that were excessively expansionary for an extended period.”
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