Political-economic relationships change all the time, as a historian of European history understands all too well. Investment banker Martin Lustgarten thinks that “time is on the side” of the Brits. After Brexit, they might follow the same path as Switzerland.
“Monetary Policy Requires Currency”
National sovereignty requires that a nation has its own currency in order to have a viable monetary policy. Otherwise, a nation must simply depend on its fiscal budget to control its financial situation. The English retained their pound in order to maintain an independent monetary policy.Great Britain had the best of all worlds when it could be a member of the European Union and still maintain its own currency. It enjoyed EU passport rights and could also devalue its British pound to facilitate trade. Switzerland shares some of these very same features.
Who controls immigration in the European Union? Technically, the government headquarters in Belgium. Thus, the EU can force other member nations to accept immigrants from other nations.Switzerland still maintains control over its borders. This makes it very lucrative to have a Swiss citizenship. The nation can better control its society and create a unified mentality.
For some investors, London real estate is some of the best in the world. After Brexit, prices went down due to the devalued pound. Whether, they admitted it or not, England might have benefited from having a lower pound, because it made its export products cheaper. England might want more control over its immigration.
One of the key elements of Brexit is that investment banking jobs are not going to simply disappear in either England or the European Union. Investment banker Martin Lustgarten reminds people that some of what you hear in the press is propaganda, meant to promote a certain side. Capital will still be needed in both England and the EU.
What Brexit may do is “adjust the banking jobs from EU nationals to Englishmen.” There might be more localized economic structures supported. Investment banker Martin Lustgarten helps his clients determine when it is the “right time” to invest.