On 29/07/16 11:11, Michael Kilpatrick wrote:
On 27/07/2016 23:56, bert wrote:
In article , "Dave Plowman (News)"
writes
In article ,
tim... wrote:
The bert version of economics. Price goes up by 3%, so sales must go
down by only 3%.

except that prices wont go up by 3%, because the exchange rate change
has already made them go down by 10%

Making the imports we rely on that much more expensive. Pushing up
costs.

Which means home products which have high added value become relatively
cheaper so imports fall ( or do not rise as quickly)


Erm, does the falling pound somehow make a factory appear by magic,
suddenly producing all the things that we simply didn't produce the
previous day when the pound was higher, and thus allowing us magically,
suddenly not to have to import all those things?


no, but it sure allows factories that were struggling to become more
competitive


Mind you Brexit is going to be the excuse everyone will use to downsize
an ailing UK based business.


Michael


--
€œBut what a weak barrier is truth when it stands in the way of an
hypothesis!€�

Mary Wollstonecraft