Brexit Update: Does Brexit Really Mean Brexit?

The U.K. has a new Prime Minister – former Home Secretary Theresa May – who has committed her cabinet to pursue a divorce from the EU. With the government in London now falling inline with the mantra that “Brexit means Brexit,” is there no hope for a reversal of the June 23 referendum results?

In this Brexit Update, we tackle three questions:

  1. What is the big picture relevance of Brexit?
  2. Have the “next steps” of the Brexit saga become any clearer?
  3. What does the U.K. want and can it get it from the EU?

The global relevance of Brexit is that it will signal to the markets that stimulative fiscal policy is around the corner. To be clear, Brexit will not cause fiscal stimulus (at least not outside the U.K.).

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