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 from using Sterling and taking advantage of the significant control offered by issuing your own currency. An institutional approach It is exceptionally important that we learn the right lessons as we plan for Scotland to become independent again. It is [...]
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 Swinney went further, “Eradicating child poverty is my top priority because I do not wish to condemn any young Scot to a life of disadvantage simply because of where they were born.” Turning words into action, the Scottish Government will [...]
30 things you know when you understand MMT
What is modern monetary theory is a question that requires a deep understanding and analysis of a school of thought. Modern Monetary Theory suffers from straw man syndrome. For some, it is much easier to construct a straw man version than to try to understand MMT. Below, I explode that strawman with 30 things you know when you understand MMT. What is Modern Monetary Theory? Straw man. Noun. An intentionally misrepresented proposition that is set up because it is easier to defeat than an opponent's real argument. Every idea, concept, or school of thought can be boiled down to its [...]
Scotland and the Euro. Enough already
Can we please put this one to bed? Scotland will never join the Euro. End of. The choice is clear: keep the pound or use our own currency. In this short post, I will explain why the Euro is not a currency option for an independent Scotland. Please send your pro-Euro Indy mates here! In 2022, the Scottish government announced that the plan for a currency union with England, ‘Sterlingisation’, was no longer the preferred currency option for Scotland. The medium to long-term plan was to adopt our own currency, "This would take place as soon as practicable through a careful [...]
Scotonomics Post Indy Economy Quiz
In January, we created a very short quiz on Scotland's post-indy economy according to the conditions set by the current Scottish government. You can complete the quiz here. It was important for us to be as factually correct as possible when outlining the Scottish government's post-independence approach. This is a challenge when the underlying neoclassical assumptions of the Scottish government are very different from the real-world assumptions we hold. We used Building a New Scotland: A Stronger Economy with Independence as this is the most recent and detailed outline of their position. The quiz covers what the Scottish government calls [...]
The 2023 state of the climate report: economists must justify their actions
The global scientific community calls for a total rethink of how we manage our economy. Every economist must answer the central charge: justify this economic paradigm or help us shift to a new one. The 2023 state of the climate report: Entering uncharted territory was released in October. You can, and you really should read the full paper. The report says: We must shift our perspective on the climate emergency from being just an isolated environmental issue to a systemic, existential threat. Read that again: existential threat. The authors put our current economic paradigm in the dock. In summary, they say [...]
Scotland’s Government Bonds
Scotland's government bonds are the least-worst way to raise much-needed finance for a Scottish government unable to abandon a neoliberal straitjacket. By 2026, Scotland will have a Government Bond available to investors. It will borrow up to £3 billion, with an annual limit of around £500 million. For context, Scottish GDP is likely to be around £230 billion by the end of the parliamentary term. So, up to £500 million per year is a small amount to borrow. Some would argue that it is too small to be insignificant, but we don't agree. £500 million buys you a lot of [...]
The economic vision for Scottish independence
Stability. This is the economic vision for Scottish independence emanating from the current SNP administration. Is this the rallying call for a movement that wants a different type of economy? During our Festival of Economics in March 2023, we interviewed SNP MP Stewart Hosie, who was, at the time, shadow spokesperson for the economy at Westminster. It was a fascinating conversation. Stewart highlighted the importance of 'economic stability' and 'fiscal responsibility' as Scotland migrates to an independent economy. Reporting on the conversation, The National wrote: Stewart Hosie, the party’s economic spokesperson, said he wanted to sound like a “boring banker” [...]
Currency in an independent Scotland
Scotland's decision on which currency to use post-independence is the most important decision we will make. This, more than any other economic decision, will shape our economic future. We put a case for a Scottish currency on day one of independence by listing some of the fundamental differences that affect a country as a user of a currency and a currency issuer. After a yes vote for Scottish independence, everyone agrees that initially, during the transition period, we will continue to use Sterling as our currency. But what happens next? What will be the currency in an independent Scotland? An [...]
Scotland in the EU the economic case has yet to be made
One of the major decisions affecting Scotland post-independence is whether or not it should join/re-join the European Union. The economic case has not been proved, it has not even been discussed. There is no doubt that Brexit had a huge and unnecessary negative impact on the Scottish economy. But this does not mean that being part of the EU is the solution. The economic case for European membership still has to be made. The case for Scotland as part of a single market is much stronger. The main economic difference between being part of the single market and the EU [...]