No-deal Brexit: We should not forget that the United Kingdom is going to react

There is legitimate concern about the consequences of a no-deal Brexit for the United Kingdom: relocation of industry to continental Europe, slowdown in trade between the United Kingdom and the EU, loss of the labour force that had come from Europe, loss of European aid (agriculture, universities , etc. ). But before becoming over- pessimistic about the United Kingdom, we have to keep in mind that there will be an economic policy reaction in the country to the deterioration in the economic situation: Expansionary monetary policy leading to a depreciation of the pound sterling , which will preserve the United Kingdom ’s cost competitiveness ; Fiscal deficit to boost activity and replace European aid ; Government aid and subsidies to boost investment and maintain industrial activity; Likewise , an even more attractive tax system ; Possible deregulation of banks and financial markets in order to gain market shares in financial services.