Voters in Scotland deserve the best evidence-based assessment of the likely economic consequences of independence. We have sought to collect and assess that evidence as part of our analysis of the economic implications for the whole United Kingdom.
Examining how an independent Scotland could back and defend a Scottish currency.
Previous reports determined that an independent Scotland should maintain its own currency. This report outlines how and why Scotland should form a central bank to manage that currency. The philosophy behind why a central bank is important is outlined with extensive reference to modern and historical precedents. Scotland’s central bank would be self-funded and self-sustaining once established and, indeed, should be publicly owned so as to generate a return for the Scottish Treasury.
On the 25th May 2018, after more than 18 months of preparation, the SNP-commissioned Sustainable Growth Commission made its final report – entitled Scotland – The New Case For Optimism – which has been presented as a series of recommendations on which could rest the economic, fiscal and monetary case for Scottish independence in a future referendum campaign. This document does not cover the full gamut of policies which would be directly affected by independence nor does it cover the full range of institution building required by a nascent independent state.
Common Weal looks at Fiscal Policy and provides an alternative prospectus based on ensuring wellbeing and equality for the people of Scotland.
The quest for GDP and GDP Growth is not sustainable in a finite world and this should also be recognised by an independent Scotland. Metrics such as environmental impact, inequality and wellbeing are far more important and only by elevating them above the quest for “growth at all costs” can a truly fair and sustainable Scotland be created.
Considering only the retail sector, £80 million is removed from the Scottish economy each year in the form of transaction charges skimmed from ATM withdrawals, debit/credit card payments and other forms of transaction like Paypal and internet transfers.
he UK’s model of economic development is based on a unproductive sectors which generate vast profits through four particular methods – financial speculation, asset value inflation, debt-fuelled consumption, and concentration and monopoly.
This report argues that Scotland, if independent, could improve its performance across 12 key pillars of its economy.
―Countries rarely have full control over all aspects of currency management simultaneously. Compromises must often be made, though different countries arrive at different solutions to those compromises.
― Setting up a new currency, if an independent Scotland chooses to do so, will involve planning but the steps involved are well understood and opportunities arise for public involvement in some of them, particularly design of new notes and coins.
KEY POINTS
― Immediate economy boost: We propose a 250 ScotPound (S£) dividend be given to each Scottish citizen, increasing the overall purchasing power within the economy. The injection of funds would not add to the UK deficit and we estimate the payment infrastructure of the system would be low cost – in the region of £3 million – all at a time of austerity.
Both books are essential reading for both believers in Scottish independence and undecided voters who seek answers to their practical questions about the processes required for starting an independent country.
The introduction of a new currency needs to account for customer deposits and loans and the Sterling pensions guarantee.
The Sustainable Growth Commission's tests for to establish a new currency are flawed. A new 7-point set of tests are proposed.