Option number three would involve Scotland continuing to use the - TopicsExpress



          

Option number three would involve Scotland continuing to use the pound even if London said it couldnt. This sounds far-fetched, but the free-market Adam Smith Institute says it is both feasible and sensible. The institutes research director Sam Bowman said Panama, Ecuador and El Salvador all used the US dollar without permission, so there was no reason Scotland could not use the pound without Westminsters permission. What it would mean is that the Bank of England would not act as the lender of last resort for Scottish banks or as a guarantor for an Edinburgh government, but according to Bowman this would be no bad thing as it would deter irresponsible lending. An independent Scotland that used the pound as its base currency without the English governments permission, with banks continuing to issue notes privately and private citizens free to choose any currency they wanted, would probably have a more stable financial system and economy than England itself. theguardian/business/economics-blog/2014/feb/12/scotland-independence-currency-options
Posted on: Thu, 13 Feb 2014 05:46:18 +0000

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