to wonder how Scotland's decision will affect england?

[LEMmingaround]

Just that really? If they do go their ownway how will it affect england?

Also will it open a can of worms with wales and northern Ireland?

In that link Salmond is again failing to distinguish between Currency Union and using the pound. Is he saying plan B is to use the pound? (Which of course can happen, but it ain't CU)

Pretty hard to tell from half a quote -he could easily have been saying that insisting on currency union is not in Scotland interests. But frankly it's irrelevant whether a politician has tweaked his message a bit -they all do it, salmond included. It's highly unlikely we will be allowed a currency union, and arguing about what a back bench mp has said doesn't change that because it's not his decision. Frankly it's deliberately distracting from the argument that the yes campaign don't have a currency plan. A fundamental problem.

I think both sides are guilty of conflating a formal currency union, with Scotland continuing to use the pound informally. Eg

www.bettertogether.net/blog/entry/leave-the-uk-leave-the-uk-pound

AFAIK there is no argument about whether Scotland can continue to use the pound - it can (and may be better than currency union?)

The argument is over whether or not Scotland and rUK will have a formal currency union.

Frankly it's deliberately distracting from the argument that the yes campaign don't have a currency plan

THE yes campaign has a variety of perfectly viable currency options

TBH I'd say that the whole currency thing, which is really not a huge deal, is being used to derail the discussion about the bigger picture of whether or nor Scotland is better if independent as a whole.

www.newsnetscotland.com/index.php/scottish-news/9565-miliband-admits-currency-threat-will-cost-english-businesses-hundreds-of-millions

Can someone more economically knowledgeable than me explain this? I don't understand why there would be cross-border transaction costs if Scotland was using pound outside currency union?

www.newsnetscotland.com/index.php/scottish-news/9565-miliband-admits-currency-threat-will-cost-english-businesses-hundreds-of-millions

Only one side has been conflating use PhD the pound with currency union. As for transaction costs, the same applies to the Euro.

Why doesn't iScotland join the Euro?

The Yes camp say it will join the E U

www.bettertogether.net/blog/entry/leave-the-uk-leave-the-uk-pound

I'd say the above was pretty misleading?

As for transaction costs, the same applies to the Euro.

What transaction costs would there be if both iScotland and rUK were using the pound?

Why doesn't iScotland join the Euro?

It was my understanding that using the Euro is seperate to being in the EU and would involve Scotland being in the ERM for two years(?) first. It is not possible for Scotland to use the Euro from the date of independence.

I don't understand why there would be cross-border transaction costs if Scotland was using pound outside currency union?

Transaction costs only happen if money is changed from one currency to another. There will only be transaction costs if Scotland uses a different currency to the UK.

There won't be any costs if Scotland adopts the pound, either inside or outside a currency union.

There will be costs if Scotland uses the Euro or creates its own currency.

Or of course Scotland could use the Euro without currency union, but that definitely would cause an increase in transaction costs to/ from rUK.

Transaction costs only happen if money is changed from one currency to another. There will only be transaction costs if Scotland uses a different currency to the UK.

There won't be any costs if Scotland adopts the pound, either inside or outside a currency union.

Thanks. That's what I thought, I was just confused as to why Milliband said:

"Labour leader Ed Miliband has conceded that a refusal by a future Westminster Government to agree to a currency union with an independent Scotland will hit businesses south of the border.

Speaking to STV’s Bernard Ponsonby, Mr Miliband was pressed on the estimates of cross border transaction costs should no formal currency agreement be reached.

He said: “There are different estimates of that … the estimates are hundreds of millions"

Great! Something that turns things into PhDs.

Bugger. It's just my phone.

Honestly, how can people not understand that,e specially when we export the majority of our products to the UK and have an economy hugely dependent on financial service, currency is a big, fat, huge issue.

If Yes have so many currency options, why wont they admit which is their actual plan B?

Currency union and using the currency with no control whatsoever are not equivalent - and just using a currency certainly isn't better. Trying to control your economy in the long run without any of the levers of control of currency is a bit like trying to drive with your left hand tied behind your back. manageable - until you hit ice. The few countries who do this are generally utterly tiny, and with a history of economic mismanagement that means it's better for them to have less control.

That's an argument for Scotland being in CU, but not rUN. In fact, taken to it's logical conclusion, it's an argument for political union.

They have several plan Bs?

Use pound without union
Use own currency
Use euro (in future)

Currently BoE exercises levers in favour of SE England (rightly as that's where City of London/ most population is). So we wouldn't really lose any control, we just wouldn't gain any in that specific area.

So we wouldn't really lose any control

Eh? You'd be completely unrepresented???!

They are the alternatives yes - but they WILL NOT say which they would do. Because they won't have the discussion about how they will manage the downsides - or did you not see Salmond on the debate?! So no, the Yes campaign do not have a clearly stated plan B. I want to hear what their plan B is, and how they plan to make it work. Not Salmond et al saying "but we'll have a union cos it's best for Scotland" on an endless loop.

Pretty sure the BoE considers major industries...like oil. They consider stats for the UK as a whole. Which includes Scotland. There will always be regional variations - they'll still exist in Scotland.

I have a fairly high level of economic knowledge - I've studied it rather a lot both as part of my degree and professional qualifications. Currency union is not the same, equivalent, or any other "it doesn't matter" phrase. Currency union in itself is flawed - look how well the Euro isn't working. But we can't discuss how any of these issues would be dealt with because the Yes campaign are refusing to discuss a fundamental basic. That is not to the benefit of the people of Scotland who are trying to make a huge decision. It might not matter to you, or other people who are "yes at any cost" - but to a hell of a lot of people issues like this are hugely important.

But at the moment the BoE works in the best interests of the UK, of which Scotland is only a tiny part. I very much doubt Scotland is at the forefront when setting rates etc for the UK.

I'd say from the we are keeping the pound, oh no you're not pantomime that continuing to use the pound outside of a currency union is fairly obviously planB and there aren't really any major issues with this.

Except you'd have no representation at all???

We currently have very little representation anyway.

Scotland and rUKs economies are very similar, I can't see thus being a huge issue?

But the Yes campaign are always going on about how Scotland is an oil rich nation, Scotland will have totally different spending priorities, Scotland will create new and thriving create industries, etc, etc.

Assuming we get the geographical share of oil, it becomes something like 90% Scottish. There's a reasonable probability that a number of FS companies will relocate south. So whilst our economies are very similar now, how similar will they be 5 years post independence...possibly not very.

I don't see different spending priorities would be an issue as long as iScotland isn't trying to rack up vast amounts of debt. I also meant similar economies insofar as wealth creation/head etc - not more specific.

Of course no one can say where an iScotland will be in 5 years, but immediately on independence it makes most sense, for rUK too, for iScotland to keep using the pound one way or another. Of course once things settle down a bit, Scotland may wish to join the Euro, or even launch its own currency?

Would an iScotland not set up a Central Bank?