Brexit: What a Difference a Week Makes

Britain’s decision to part ways with the European Union in a referendum last week was a classic example of what former US Defense Secretary Donald Rumsfeld might call a “known unknown.” The vote was on the slate, the polls were very close through the end, and yet no one expected the British to actually cut the umbilical cord. But cut it they did, sending the pound sterling and stock markets reeling and leading to a widespread spike in risk aversion, reflected in record-low US Treasury bond yield

Source: Peterson Institute (PIIE)