Positive and Negative Impact of Brexit on UK's Macroeconomic Policy

Principles and applications of
Macroeconomics

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
Using economic policy analysis and evaluating the positive and negative impact of Brexit on
UK................................................................................................................................................3
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Macroeconomic policies are developed with the aim of achieving some kind of
macroeconomic goals so that the country is able to conduct business in proper way. Also, the
present report is based on the monetary policy of UK this is made to keep the inflation rate low
and stable. Furthermore, the study will analyse various positive impacts of Brexit reforms on this
policy so that all the work of the country is conducted in right and appropriate manner.
Moreover, the report will also analyse how the monetary policy in UK helps the business and
increase the possibility of more investments in the country in the long run. Furthermore, the
significance of monetary policy in promoting political freedom in the country will also be
discussed in detail. Moreover, the study will highlight positive impacts of such Brexit reforms in
terms of increasing the standards of living and providing better consumer benefits in UK people.
Also, the report will analyse certain negative impacts of the new Brexit reforms on the
already established monetary policy in the country and will also explain how these have
impacted on the working of business and its people living in and around UK. Furthermore, the
study will identify certain negative changes that have been brought through the Brexit reforms on
the small firms that wish to expand in other regions and the country in the future for capturing
more market share. Also, negative economic impacts in terms of reduced investment and
shortage of skilled workers will also be discussed in detail under this report. Lastly, the report
will identify how various business have devised certain strategies and polices in overcoming
such negative impacts of the Brexit so that working becomes easier and better sales of the
business might be ensured in due course of time.
Using economic policy analysis and evaluating the positive and negative impact of Brexit on UK
Monetary policy in any country is made to ensure that overall money supply is controlled
and sustainable economic growth in the country is achieved. Also, monetary policy in the
country might be explained either as expansionary or contractionary to wither increase or
decrease the money supply in the country depending on the current situation of the country.
Also, at the time of its formulation in the country certain factors are been looked such as gross
domestic and inflation, growth rates and much more (Hendry and Muellbauer, 2018). Moreover,
monetary policy in UK is enacted by the central government so that economy might be kept on
the certain level for better operations. Furthermore, monetary policy consist of three main tools
such as open market operations, reserve requirement and discount rate. Also, the monetary policy

in UK has allowed the people to borrow certain amount of funds to start-ups small business
especially in those time when the economy is growing down and people require fund for conduct
of activities.
Furthermore, with upcoming of new Brexit reforms where United kingdom existed from
European union created both positive and negative impacts on operation of various business in
UK. Also, in terms of positive impact of the Brexit it can be said that the country has the benefit
of having their own trade deals and regulations so that they are not dependent on others ( 15
Advantages and Disadvantages of Monetary Policy Tools, 2022). Moreover, the country has now
the benefit of making the law of their own that has encouraged more of skilled labour force from
outside to come to United Kingdom so that better growth and economy of the country might be
developed (Atkinson, 2020). Also, with the new reforms monetary policy has also been benefited
as UK would be no longer paying the European budget contributions that was earlier paid in
terms of liabilities as being the partner of. Moreover, monetary policy of the UK has allowed in
increasing the job opportunities in the countries for UK people that earlier was limited because
of not having Brexit reforms.
Thus, more people have now more business opportunities in their won country and thus
standards of living are also increased. Also, the purchasing power of the people have also been
increased due to which they are able to purchase of variety of goods even at little higher prices
than earlier. Also, the positive impact of the Brexit reforms on monetary policy of the country is
that more UK people are encouraged by the government to start up their own business as
providing large amount of funds thus promoting the welfare of the country. Furthermore, Brexit
reforms had been provided better for the monetary policy as it had open up new opportunities for
the growth for UK business (Teh and Shanmugaratnam, 2021). For instance : The fall of pound
had made the British products cheaper and easily available in different international markets that
made more appealing to the potential customers that are requiring the goods that are produced by
the UK market thus increasing the market share on the larger scale.
Also, with the better planning and development of the strategies now the UK has the
option to uplift the economy through creating better health and welfare activities' within the
country so that people do not have to face many difficulties in availing different services within
the country (Karmakar, 2021). Also, with the increase in funds after the Brexit reforms in the
country the government would be able to plan better development activities so that people of the