Brexit's fallout comes into focus, and uncertainty will prevail

CONFIDENCE and uncertainty are two variables that worry all economists when they reflect about the future. Since they are difficult to quantify, they don't make it into their equations and the models they work with.

That notwithstanding, there is expert consensus that the Brexit vote will affect not only the United Kingdom and the European Union (EU), but the entire world economy. The political dust raised by the referendum of June 23 will take time to settle down. Much has already happened. Prime Minister David Cameron has resigned, and after a brief tussle for the leadership, Home Secretary Theresa May has stepped up to the job.

It is not only the Conservative Party that has had a leadership change. The Labour Party has also been convulsed. The majority of its backbenchers have rebelled against party leader Jeremy Corbyn. Those who voted for Britain's exit did not think that they were producing a major earthquake in British politics but that is precisely what has happened. Political uncertainty always has negative economic consequences and that will be the case with the Brexit move.