Former US Treasury Secretary Larry Summers has said that Brexit will be remembered as a “historic economic blunder” that hurt the UK economy and helped drive up inflation.
Pointing to Brexit as a factor for the rising costs, Summers also criticized the UK’s economic policy as having been “flawed for many years”.
He pointed out that “Brexit reduced the competitiveness of the British economy, imposed downward pressure on the pound sterling and upward pressure on prices, limited imports of goods, and limited the supply of employment,” considering that “all of this contributed to the rise in inflation.”
Summers blamed the central bank for the high levels of inflation, saying that “it has been reinforced by poorly judged monetary policies that have been very expansionary for a very long time.”
And whether the bank would be right to continue raising interest rates in order to tackle high inflation, Summers said he believed that “this is the right path, even if it is not palatable.”
And he believed that “there is a lesson from the experiences that we all went through,” pointing out that he did not want to predict the course of the United Kingdom’s economy, but said that he “would be surprised if another two years passed without the United Kingdom entering a recession.”
This article was originally published by RT.
