Canning's view V6 motor "Austerity has failed and will only continue to undermine our economy in the brexit negotiations," he added. It is not obvious in some analyses, but it is important to note that economic profits include opportunity costs. The profit of an entrepreneur (normal profit) is usually positive, but economic profit can be either positive or negative (loss). That's why the opportunity cost is included: in a completely competitive market, when marginal cost equals marginal revenue, profit maximization or loss minimization conditions arise. If the market price is lower than the total average cost, which means that the economic profit is negative, the entrepreneur needs to compare the value of the loss and the average variable cost. If the business continues to operate, the negative economic profit must not be lower than the average variable cost, otherwise the entrepreneur would rather shut down the company than continue to take the loss. Michael Zezas, an analyst at Morgan Stanley, also said the tax legislation would be a boon to the market in the short term, but may not be able to make fundamental changes. The current flattening of the us Treasury yield curve shows that the medium-term slowdown in the us economy and the recession of 2019 are not going away. A tax reform would widen the fiscal deficit, possibly in the future and exacerbate cyclical risks in the economy. After August 1987, for example, as the dollar fell, people rushed to buy sterling, the high-yielding currency, which rose from $1.65 to $1.90 in a very short time, up almost 20%. In order to limit the rise in the pound, the UK cut interest rates for several consecutive times between may and June 1988, falling from 10% to 7.5%, with the pound falling every time it cut interest rates. But the pound began to pick up again after the bank of England was forced to raise interest rates several times as the pound weakened too quickly and inflationary pressures increased.