More than 50 economists warned on Monday that the UK’s post-Brexit plans to boost the competitiveness of its massive financial industry could create the kinds of problems that led to the global financial crisis.
The government, seeking to use its “Brexit freedoms”, announced this month that it will require regulators to help the city of London remain a global financial center after the country left the European Union.
The group of 58 economists, including a Nobel Prize winner and former business minister Vince Cable, said making competitiveness a goal could turn regulators into cheerleaders for banks and lead to bad monetary policymaking.
It also increases the risk of harming the real economy as the financial sector sucks a disproportionate share of talent, they said in an open letter to Finance Minister Rishi Sunak.
“The UK, instead, needs clear regulatory objectives that promote productivity, growth and market integrity across the economy, while also protecting consumers and taxpayers, advancing the fight against climate change and tackling climate change. dirty money to protect our collective security,” the letter said.
Source: CNN Brasil
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