Newswise — Why did U.K. citizens vote to leave? Those who favor leaving are concerned that the E.U. has too much control over the U.K.

What are some effects on the global economy? This decision has created a lot of uncertainty and volatility in the global marketplace.

What are some effects on the U.S.? A weak euro and British pound relative to the dollar will hurt our exports. Heavy purchases of U.S. Treasury bonds by global investors in their “flight to quality” will depress interest rates. The Federal Reserve will very likely postpone any interest rate increase until the effects of Brexit on the U.S. economy are better understood.

What are some effects on the U.K. itself?Prime Minister David Cameron will step down. Standard and Poor’s may downgrade the rating of U.K. government debt which will increase debt costs for U.K. taxpayers. U.K. exports to the E.U. which currently are not subject to tariff, will now be taxed. Inflation could rise as the British pound weakens and imports become more expensive.

Read more on this topic at Dr. Frank Rose's blog.

Dr. Frank Rose's primary research interest is the performance of the derivatives markets.

Recently, the professor of finance has taken consulting assignments with the Tokyo Grain Exchange, the OECD, and the Food and Agriculture Organization of the United Nations.

He formerly served as Senior Vice President with the Chicago Board of Trade, following a 21 year career in research and management there. He has held research positions at the Organization for Economic Cooperation and Development (OECD) in Paris, and the U.S. Department of Agriculture.