3 September 2008: What Monetary Arrangements for an Independent Scotland?

currency

Lawrence H. White

Lawrence White  - Professor of Economic History at the University of Missouri and visitng professor at Queen's Belfast - tackles this often asked quesiton head on. He is well placed to do, being one of the world's leading experts on Scotand's curious and intriguing history as the only advanced economy to have experimented (successfully, he thinks) with 'free banking' - where commercial banks issue competing currencies in the absesnce of a central bank.

Here he examines three viable options for Scotland should she choose independence: Continuing with Sterling, joining the Euro, or issuing a Scottish currency.

The paper is highly imformative, conveying historical fact or economic theory in equal clarity. Its arguments and proposals should interest anyone who follows the public policy debate in Scotland.