What Is the Pound Telling Us?

From project-syndicate.org

I know from my 32 years in finance that the weird world of foreign-exchange markets can sometimes defy comprehension, and that trying to estimate sterling’s baseline, equilibrium value can be an exercise in futility. Indeed, in the heady hour after the Brexit referendum polls closed on June 23, the British pound initially traded above a rate of £1.5/$1. This exchange rate turned out to reflect the now-ridiculous assumption that the “Remain” side had won. The pound has since declined 20% from that initial peak, and it has declined similarly relative to the euro. Donald Trump looks at Barack Obama What Will ... (full story)