The Daily Express, 19 January, Professor Patrick Minford
According to Mayor Khan and his latest report From Cambridge Econometrics, Brexit has greatly damaged UK growth; by 2035 it reckons we will be 10 percent poorer than if we had stayed in the EU, and that we are already 6 percent poorer.
The analysis in this report however fails a lot of economic tests. It assumes that the economy just depends on demand, not on the supply ability of our native firms and entrepreneurs. Nor on tax, competition and technology.
Yet what we know about trade is all about what we are best at supplying; demand affects imports not output.
So the ‘model’ Cambridge uses focuses on all the wrong things when evaluating our trade relationships with Europe and the rest of the world.
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