THE BREXIT VOTE, INFLATION AND UK LIVING STANDARDS

• 成果类型: Article
• 署名作者: Breinlich, Holger; Leromain, Elsa; Novy, Dennis; Sampson, Thomas
• 署名单位: University of Surrey; Centre for Economic Policy Research - UK; Universite Catholique Louvain; University of Warwick; University of London; London School Economics & Political Science
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12541
• 发表日期: 2022
• 页码: 63-93
• 关键词: exchange-rates; prices; COSTS

摘要

This article studies how voting for Brexit affected living standards in the United Kingdom. Using heterogeneity in exposure to import costs across product groups, we analyze how the depreciation of sterling caused by the referendum affected consumer prices. We find that the Brexit depreciation led to higher inflation in product groups with greater import shares in consumer expenditure. Our results are consistent with complete pass-through of import costs to consumer prices and imply aggregate exchange rate pass-through of 0.29. We estimate the Brexit depreciation increased consumer prices by 2.9%, costing the average household 870 pound per year.