On 15/06/2016 11:12, The Natural Philosopher wrote:
On 15/06/16 10:42, GB wrote:
What's the effect of a 30% fall? A fairly massive inflationary kick, for
a start. So, interest rates will go up

No. They will go down.

Interest rate rises cause inflation.

What a weird distorted notion of economics you seem to have.


Why do you think we have 'quantitative easing' ? To keep inflation down.

Clearly not.


and 30% fall in sterling would make any british export led industry have
a massive leap in profits, if those are booked in sterling.

Hopefully, yes. But material costs will go up, whilst their contracts
may be in Sterling. So, some British industry will prosper, and some
won't. In the long run, a 30% drop in Sterling will obviously be good.