Does anyone here believe we can't use the pound?

[Mr Bairn]

Why would Westminster reject it? Out of spite is the only possible reason. It would weaken the £ and add additional costs to our biggest export market and their 2nd biggest export market.

Well they might actually just reject it out of spite, after all these are the nasty Tories you want away from so much. After Scotland has the audacity to vote Yes they might just act like children about it.

The main reason, however, is it would be political suicide to agree a currency union. Look at the Lib Dems after the tuition fee incident, Westminster have stated in no uncertain terms that there will be no currency union and they have an electorate to pander to so I really can't see them reneging on that pledge.

[H_B]

Eck will only reveal plan B if required

What's he saving it for ? Xmas?

They are being utterly eviscerated on the topic and are losing the campaign comprehensively.

[paranoid android]

Westminster have stated in no uncertain terms that there will be no currency union and they have an electorate to pander to so I really can't see them reneging on that pledge.

So, good solid economic reasons, then?

[Jacksgranda]

Plan B is probably to use the pound for a period of time with no CU while setting up our own currency

That's pretty obvious. There is nothing to stop an independent Scotland using the pound, just not (necessarily) in a currency union. Scotland could use the rouble if they wanted, although I don't really see the benefit of that!

The Irish Republic used the pound for years and there was no currency union with the UK.

[Mr Bairn]

That's pretty obvious. There is nothing to stop an independent Scotland using the pound, just not (necessarily) in a currency union. Scotland could use the rouble if they wanted, although I don't really see the benefit of that!

The Irish Republic used the pound for years and there was no currency union with the UK.

Use the rouble and transfer control of Trident over to the Russians, imo

In Soviet Independent Scotland currency chooses you.

[loyal-blue]

To me it is basically like asking 'what's Plan B if tomorrow isn't Thursday?'.

Of course there will be a currency union. Was that made clear to your average punter last night though?

[CALDERON]

It is dependant on agreement from the other side though, and Salmond has no plan B. However like a CU is, to have no contingency plan is fucking mental.

[Tonsilitis]

There are very good reasons why there will be a currency union after a yes vote. For all their bluster, Westminster cannot afford Scotland's Oil, Food and Whisky exports to drop out of the balance of trade figures. If they do, Sterling will drop like a stone which will seriously f**k the "all our eggs in one basket" City of London.

From our point of view, we don't want our main trading partner to suffer economically because the adverse effect on our own exports. A separate Scottish currency would float upwards rendering our exports more expensive and therefore more difficult to sell. For those who hanker after a Scottish Merk, our natural resources would make it a very strong currency and that would seriously damage our export industries.

The argument that we would not be independent with a foreign power controlling interest rates etc is a nonsense. We would no more be not independent than France, Germany, Holland and Italy who share a currency. Facts are that interest rates are only one of the economic levers. 90% of the rest would be in our hands and taxation is a far more effective way of controlling the economic climate than interest rates.

There is a very good article on the currency issue here.

http://www.businessforscotland.co.uk/euro-pound-or-scottish-pound/

[Mr Bairn]

There are very good reasons why there will be a currency union after a yes vote. For all their bluster, Westminster cannot afford Scotland's Oil, Food and Whisky exports to drop out of the balance of trade figures. If they do, Sterling will drop like a stone which will seriously f**k the "all our eggs in one basket" City of London.

From our point of view, we don't want our main trading partner to suffer economically because the adverse effect on our own exports. A separate Scottish currency would float upwards rendering our exports more expensive and therefore more difficult to sell. For those who hanker after a Scottish Merk, our natural resources would make it a very strong currency and that would seriously damage our export industries.

The argument that we would not be independent with a foreign power controlling interest rates etc is a nonsense. We would no more be not independent than France, Germany, Holland and Italy who share a currency. Facts are that interest rates are only one of the economic levers. 90% of the rest would be in our hands and taxation is a far more effective way of controlling the economic climate than interest rates.

There is a very good article on the currency issue here.

http://www.businessforscotland.co.uk/euro-pound-or-scottish-pound/

My understanding of economics is basic so I'm asking for a bit of a Wisdom Wednesday conversation, but is it correct that having a strong currency is in fact a bad thing?

[ForzaDundee]

The fact that we're being told we can't use the pound just sums up why I think Independence is best for Scotland.

[Double Jack D]

Irvine Welsh has summed it up pretty well on twitter. It's not the currency thats the issue, it's who pockets it.

[yoda]

It's easy to say "There is a Plan B and Salmond would be foolish to show his cards before negotiations take place" but showing his cards now might actually be the difference between having negotiations and sitting at home thinking what might have been. Either he blinks first or he looks like an idiot when questioned about it, like last night.

Personally I think Salmond doesn't actually need a Plan B during the debates, he just needs to have a coherent rebuttal. There's plenty of reasons showing why a currency union benefits both sides and why it would be workable (in the short term at least), instead we got "But it will happen, don't care what you say it will happen, look you said it's okay, it's happening and that's that".

[Spain]

It's easy to say "There is a Plan B and Salmond would be foolish to show his cards before negotiations take place" but showing his cards now might actually be the difference between having negotiations and sitting at home thinking what might have been. Either he blinks first or he looks like an idiot when questioned about it, like last night.

Personally I think Salmond doesn't actually need a Plan B during the debates, he just needs to have a coherent rebuttal. There's plenty of reasons showing why a currency union benefits both sides and why it would be workable (in the short term at least), instead we got "But it will happen, don't care what you say it will happen, look you said it's okay, it's happening and that's that".

Agree entirely. I've perhaps put too much emphasis on the Plan B, but he needs to do one or the other. Standing there just saying it'll definitely happen is not working.

[Tio Pepe]

It's not for Scotland to tell what will be a foreign country what is best for them. That is supreme arrogance.

The transaction costs for UK business issue is a total red herring as they will be passed on to the consumer - the Scottish consumer.

[Tonsilitis]

My understanding of economics is basic so I'm asking for a bit of a Wisdom Wednesday conversation, but is it correct that having a strong currency is in fact a bad thing?

A stable currency is more important than a strong currency. A strong currency, however, is not all bad at least short term. It makes your foreign holidays and imported goods cheaper. It does, however, make our exports more expensive and so harder to sell. Ultimately, it would make manufacturing industries based on exports far harder to sustain. Why do you think, quoting an extreme example, there are hardly any Saudi Manufacturing industries? A strong currency is also what makes a pint cost £10 in Oslo.

One other thing on currency is that, the Euro is a non starter for at least a couple of years as countries have to have used their own currency for at least that time before being considered for entry. But talking of the Euro, the reason why Germany sticks with it and helps bail out the likes of Greece is because a German mark would be too strong and would have shot upwards making their BMWs and Mercedes even less affordable, if not unsaleable abroad. Being in a stable Euro is vital to selling their manufactured goods.

Scotland and rUK would have equally strong needs for currency union but for different reasons.

[Bookies Love Me]

If Scotland is going Independent:

Why do they need to hang on to the pound?

Why do they have to rely on the Bank of England to bail them out if the shit hits the fan?

Why is Currency Union in the best interests of the rest of the United Kingdom?

Why can't they take-up the Euro?

I thought Scotland was ready for independence?

[Jacksgranda]

A stable currency is more important than a strong currency. A strong currency, however, is not all bad at least short term. It makes your foreign holidays and imported goods cheaper. It does, however, make our exports more expensive and so harder to sell. Ultimately, it would make manufacturing industries based on exports far harder to sustain. Why do you think, quoting an extreme example, there are hardly any Saudi Manufacturing industries? A strong currency is also what makes a pint cost £10 in Oslo.

One other thing on currency is that, the Euro is a non starter for at least a couple of years as countries have to have used their own currency for at least that time before being considered for entry. But talking of the Euro, the reason why Germany sticks with it and helps bail out the likes of Greece is because a German mark would be too strong and would have shot upwards making their BMWs and Mercedes even less affordable, if not unsaleable abroad. Being in a stable Euro is vital to selling their manufactured goods.

Scotland and rUK would have equally strong needs for currency union but for different reasons.

I knew there were reasons why a strong currency isn't always a plus factor, but as it is 40+ years since I studied Economics, I couldn't remember what they were!

[Tonsilitis]

It's not for Scotland to tell what will be a foreign country what is best for them. That is supreme arrogance.

The transaction costs for UK business issue is a total red herring as they will be passed on to the consumer - the Scottish consumer.

You are right, rUK can refuse to enter a currency union with us. The price would be the backside falling out of Sterling and thereby destroying the City of London but maybe Chancellor Boy George will do that out of spite. Or maybe there is a plan to blame it all on us and invade to sort us out? That's about as likely!

And you right that transaction costs is a bit of a red herring. Its certainly and issue but it is far from the major one.

[Shuggie_Murray7]

So the rUK will cut off its nose to spite its face.....unless we do actually returna yes vote, in which case there will be some furious backpedaling to negotiate a currency union.

[Tonsilitis]

So the rUK will cut off its nose to spite its face.....unless we do actually returna yes vote, in which case there will be some furious backpedaling to negotiate a currency union.

There will be a currency union. They just won't call it that to save some face. I also suspect that negotiations over Trident may factor in these discussions also - maybe its removal after a longer period than the SG presently say they want.