Economist outlines the ripple effect of Brexit

Carnegie Mellon Qatar hosts Michael Frenkel, professor of macroeconomics and international economics at WHU – Otto Beisheim School of Management

DOHA, QATAR — Speaking at a Dean’s Lecture at Carnegie Mellon University in Qatar (CMU-Q), economist Michael Frenkel outlined the ramifications of Brexit on the British economy, the European Union and the rest of the world. Brexit refers to the exit of Britain from the European Union, a process that was triggered by the June 23, 2016 referendum in the United Kingdom. Within the next two months, the British government is expected to submit its official intention to withdraw from the EU.

Frenkel is a professor of macroeconomics and international economics at WHU – Otto Beisheim School of Management, where he also serves as associate dean for international relations and diversity, and director of the Center for European Studies. Frenkel has worked as a consultant to the International Monetary Fund, the World Bank, and the European Commission.

During the lecture, Frenkel emphasized that in leaving the European Union, and if no trade agreement is reached with the EU, the UK’s trade regulations would necessarily fall in line with those of the World Trade Organization. These higher tariffs and greater barriers to imports and exports will have far-reaching and negative effects on trade flows around the world.

“Brexit will have serious repercussions for the UK and the European Union, but I hope it will be a case study in what not to do in an integrated economy,” said Frenkel. “We know that in economic terms, trade is a win-win, and the elimination of trade is a lose-lose.”

CMU-Q’s dean and CEO, Ilker Baybars, commented: “Brexit is a complex issue that will have implications far beyond the borders of the UK and the European Union. Professor Frenkel’s insights will be helpful to our students and faculty as this unprecedented event in the history of international trade unfolds in the coming months and years.”

Michael Frenkel spoke to an audience of students, faculty members and guests from other Education City institutions.