Here’s What the Global Economy Could Look Like After a Brexit

The ripple effects for the global economy following a Brexit are too many to list. Sebastian Mallaby a senior fellow for international economics at the Council on Foreign Relations said there would be enormous uncertainty following a Brexit vote. The European Union buys roughly half of the UK's exports, Mallaby said, adding that a Brexit would 'rip up the rules' that govern those exports. On Tuesday, billionaire investor George Soros said in an op-ed in The Guardian, that the British pound could sink following a UK departure from the European Union. He said the pound could lose more than 15 percent against the dollar - the decline seen in September 1992, when Britain exited the European Exchange Rate Mechanism, a band that aimed to lower currency volatility. 'I think that's plausible,' Mallaby said, adding that Britain is more vulnerable now than in 1992, given its higher current account deficit as a share of GDP. Mallaby also said it's difficult for the Bank of England to help stop a potential pound devaluation, given how interest rates are already close to zero at 0.5 percent. 'There are a bunch of reasons why this could be worse than last time,' Mallaby said. TheStreet's Scott Gamm reports from Wall Street.