“Brexit” is not a disaster for the world economy

Once the dust has settled, the global economic implications of the UK’s vote to leave the European Union are likely to prove much less dramatic than many had suggested during the past few weeks. The adverse effects on the UK itself and the direct impact on other European economies should be small. And there may be some offsetting benefits for the global economy, including looser monetary conditions. However, the long-term political consequences could turn out to be far more significant.