In a historic decision yesterday, Britain voted to leave the European Union. The vote sent shockwaves throughout the world, and into the world economy.
Like a lot of people, Sandeep Muzumder was surprised at the Brexit outcome. The Wake Forest University economist expected Britain to stay in the EU.
But they won't, and that means an uncertain political and economic road ahead. Global stock markets tumbled today as investors looked for safer bets. Muzumder thinks the markets will eventually settle, but in the short-term, North Carolina companies and investors could get hurt.
“Many North Carolinians have stocks and shares and government bonds not just in U.S. companies but in foreign companies and governments too. Those will obviously be affected by the activity in markets today.”
And it's not just the stock markets being affected. The exchange rate for the British pound is at a 30-year low.
On a practical level, Muzumder says those traveling in Europe and the UK this summer will see their dollar go a lot further than it has in the past.