Scotland & Sterling

[Wharton]

What benefits would accrue to the remainder of the UK if an independent Scotland could be prevented from retaining Sterling as its currency?

[Svejk]

isnt it a case of avoiding damage, wharton. possible future bail=outs, etc. did'nt the euro prove the folly of sharing a currency.

[Wharton]

Thanks for your response Svejk, even though it doesn't answer my question.

[Svejk]

i expect it went over your head. ;-)

[factor-fiction]

Maybe the first question should be 'what would be the risks and costs to the rest of the UK of letting a separate nation and economy (Scotland) share our currency?
The answer to your question would then be the avoidance/reduction of those risks and costs

[Svejk]

oops, obviously crossed post, db. ;)

[Peter Pedant]

Oh, not underwriting the banking debts of Scotland's banks over which they ( English ) would have no control.

Wharton as you have said elsewhere, Scotland could use Sterling - just as Vietnam and Zim use the dollar - but they dont have any input into Fed decisions ( of course ) - Scotland would be in the same position.

Salmond wrong-footed himself by concluding that of course London would want his input and expertise in running the economy when it was obvious they didnt.

[Wharton]

I'll try and put my question another way. What would England, Northern Ireland and Wales gain from preventing an independent Scotland from retaining Sterling as its currency?

[factor-fiction]

And I'll turn it round again and say it avoids the costs/risks of allowing it to share our currency

[Peter Pedant]

we've told you:
But I will tell you in another way;

The advantage is London Doesnt pick up the bill of bank failures like RBS which it would otherwise do. Saves money - lots of it.

Scotland could use sterling as acurrency much in the same way as Vietnam does.

[anneasquith]

I would think nothing.......but im sure many will disagree.

[Wharton]

This is like being at a seminar for politicians entitled "How To Speak Without Answering A Question". I want a list of the benefits.

[factor-fiction]

What is the benefit of locking your front door.
It reduces the chance and potential costs of a break-in.

Same sort of thing here- the benefit is the avoidance of costs and risks. I think we've nearly all said pretty much the same thing

[askyourgran]

If Scotland wants to go alone, they go alone without any of the UK's influence.

[woofgang]

Wharton, how about a few manners here?

As my Mother used to say "I want" gets you nothing.

[Baldric]

By talking about retaining Sterling, are you actually saying you want "Independence Light" and not the real thing?

[jomifl]

If Scotland was in a financial union with the UK in Sterling then if the Scottish economy went pear shaped it could cause the pound to be devalued despite the relative smallness of the Scottish economy. The UK would not have complete freedom to revalue the pound as it would have to consider the effects on the Scottish economy. The points made by other posters are valid and straight answers in my view and not evasive. Why do you think it would be otherwise?