One of the City’s leading economists has countered George Soros’s prediction that a Brexit vote will lead to a damaging 20% fall in the value of the pound by saying that a depreciation would be good for the economy.
Albert Edwards, global strategist at Société Générale, said in a research note to the bank’s clients that a reduction in the value of the currency would be as beneficial as it was during the period after Black Wednesday in September 1992, when Soros’s speculative attack on sterling drove the UK out of the exchange rate mechanism (ERM).
Warning that the pound could fall whatever the outcome of the referendum on Thursday, Edwards said: “There is an argument that a Brexit might look similar to the aftermath of sterling’s ignominious exit from the ERM.
