Cabinet resignations and the Chequers proposal could destabilise the economy

The stability of UK economy is at a critical stage - now that Theresa May's leadership may be challenged following high-profile Cabinet resignations, and depending on how the EU reacts to the 'soft' Brexit approach agreed at Chequers. Michael Ellington and Costas Milas (University of Liverpool) explain how the pound's exchange rate and volatility go hand in hand with peaks in policy uncertainty.