Has a no-deal Brexit become more likely?

Anatole Kaletsky | Gavekal Dragonomics | 03 June 2019

After British Prime Minister (PM) Theresa May's resignation announcement, some of the candidates to succeed her have proclaimed their desire for a 'no-deal Brexit'. In response, European leaders are ramping up preparations for a total rupture with the United Kingdom, financial analysts are revising their forecasts accordingly, and the pound sterling is collapsing.

The fears about a no-deal Brexit are understandable. Such an outcome...