Articles on Scotland’s Economy
Analysing Scotland’s Political Economy
Scottish Government Bonds and Investing in Ourselves
Scottish Government Bonds and Investing in Ourselves Working Paper William Thomson (Scotonomics) and Jim Osborne (Scottish Currency Group). Download the full report On November 13th, 2025, the Scottish Government published its plans for a Bonds Programme as an alternative to borrowing from the UK Treasury National Loan Fund (NLF) to fund capital investment. Between 2026 and 2030, the Scottish Government [...]
MMT work in support of the climate movement
The scope of MMT work in support of the climate movement proves that the climate movement finds a natural economic ally in MMT Modern Monetary Theory highlights that almost all nations have more fiscal space (AKA government spending power) than they currently use. This simple observation supports the climate movement's demand for stronger government action, particularly from governments in the [...]
Assumptions about government finances are stymying the climate response
Assuming that governments are financially constrained—rather than resource-constrained—stymies the climate response. Given the urgency with which states must mobilise to mitigate and adapt to the ecological crisis, we must develop and share a better understanding of government finances if we are to secure a prosperous future. Economist Stephanie Kelton uses the phrase ‘learned helplessness’ to describe the self-imposed, ideological constraints [...]
Scottish Government New Bonds
By borrowing from the financial markets, the Scottish government seeks to reduce its financial obligations to the UK government. Soon, the Scottish government will issue its own bonds. As outlined in the Scottish Government announcement, it is the first step for Scotland to demonstrate to international markets that it is a stable destination for more foreign investment. I first wrote [...]
Private sector debt in Scotland
Private sector debt in Scotland - the real ticking time bomb You can be sure of one thing. If politicians and mainstream economists are not talking about something, it must be important. We live in an era of misdirection. Ample headlines and column inches are dedicated to the national debt. Nothing is written about private sector debt. Thankfully, both Professor [...]
The EU’s SGP in an independent Scotland
Adopting the EU's SGP in an independent Scotland will undermine economic resilience. Discussion paper: Undermining Economic Resilience - The Economic Impact of Adopting the European Union’s Stability and Growth Pact in an Independent Scotland. Dr Dirk Ehnts and William Thomson. The paper is written with a specific period in mind: the decade after a vote for Scotland to become independent. [...]
Scottish Currency Project. The Transition to a Scottish Currency
Over the coming months, Scotonomics will consult with monetary operations academics and finance professionals to build the knowledge base on a transition to a Scottish Currency after independence. We will also refer to and cite the extensive literature on currency creation, currency operations, transitioning to a new currency, and establishing a new currency. We are fortunate that the literature is [...]
Scotland’s exports are stuck
Food and drink exports have increased by 7% in the last decade. But look behind that figure and you see a very different story about Scotland's exports. A 'story' emerged at the end of May about Scotland's food and drink exports. The Herald picked up on the story, but I couldn’t see it anywhere else (apart from various threads, [...]
Understanding Scotland Economy Tracker Response from Scotonomics
Understanding Scotland Economy Tracker - The underlying story of Scotland’s economy is a lack of government spending For the last four years The Understanding Scotland Economy tracker has been tracking the general public’s views on the economy. See the latest report here. Every quarter we get a feel for economic sentiment from a cross section of over 2000 Scots. I [...]
A Government Job Guarantee in a Wellbeing Economy
A Government Job Guarantee must be a central economic policy in a wellbeing economy and should be central to the next independence campaign. William Thomson's introduction to a Government Job Guarantee. Although the Job Guarantee is a macroeconomic policy designed to stabilise the economy, it has other appealing features. A job guarantee is a priority if we are to [...]
Greece shows the importance of Scotland issuing its own currency
The experience of Greece provides an another example of the importance of Scotland issuing its own currency One of the scare stories we hear about Scottish independence is that Greece's economic and social troubles in the early 2010s should be taken as warning for an independent Scotland. The truth is that Greece's story strongly points us in one direction, away [...]
Scotland’s Fight Against UK Fiscal Austerity
The Scottish Government call it 'Social Security'. It is 'Welfare' in Westminster. Clear Blue Water: Scotland's Fight Against UK Fiscal Austerity It’s rare indeed to be able to match the words of a politician with their actions. The proposed 2025/26 Scottish budget listed eradicating child poverty as one of its four priorities. In a budget speech earlier this month, John [...]
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