Donate
Total: £0.00 Goal: £15.00 Difference: £15.00
User Info
Hello ,
Welcome to Celtic Alliance Clan. Forums Posts12,638 Topics1,691 Online Stats Member(s)0 Guest(s)27 Total27
Online Guest(s) 01. Guest
02. Guest
03. Guest
04. Guest
05. Guest
06. Guest
07. Guest
08. Guest
09. Guest
10. Guest
11. Guest
12. Guest
13. Guest
14. Guest
15. Guest
16. Guest
17. Guest
18. Guest
19. Guest
20. Guest
21. Guest
22. Guest
23. Guest
24. Guest
25. Guest
26. Guest
27. Guest
|
 |
|
|
|
 Posted: Thu Feb 13, 2014 1:52 pm |
 |
|
Soulfly |
haha
they are playing poker at the moment, a bluff to put doubt in the mind of voters, saying no to a currency union after a yes vote would cause alot of problems for the uk, can list if you want
the uk gov cant stop the use of pound mate, thats a fact, we can still go on and use it.. infact some say we would be better off, not havning to take on share of uk debt etc
Commenting on the Chancellor George Osborne’s announcement today that is likely to rule out an English currency union with an independent Scotland, the Adam Smith Institute’s Research Director Sam Bowman said:
“An independent Scotland would not need England’s permission to continue using the pound sterling, and in fact would be better off using the pound without such permission.
“There is very little that an English government would actually be able to do to stop Scottish people from continuing to use the pound sterling if they wanted to.
“As the American economist George Selgin has pointed out, what the Prime Minister really means is that the Bank of England would not act as a guarantor for Scottish banks or the Scottish government. Lucky Scotland: the implied promise of a bailout from the European Central Bank is exactly what allowed Eurozone banks and governments to borrow cheaply and get themselves into a debt crisis.
“Scotland’s position would be closer to that of countries like Panama, Ecuador and El Salvador, which use the US Dollar without American “permission”, and, according to research by the Federal Reserve of Atlanta, consequentially have far more prudent and stable financial systems than if they were part of a formal currency union.
“An independent Scotland that used the pound as its base currency without the English government’s permission, with banks continuing to issue notes privately and private citizens free to choose any currency they wanted, would probably have a more stable financial system and economy than England itself.
“It’s up to Scots to decide whether they want independence, but the Chancellor’s announcement today should be seen as a feature, not a bug.”
For further comment email sam [at] adamsmith [dot] org or phone 02072224995.
The Adam Smith Institute is an independent libertarian think tank based in London. It advocates liberal public policies to create a richer, freer world.
|
|
|
|
Groups
General
Posts
3322
Joined
Aug 06, 2009
Status
Offline
Gender
Male
|
    |
| Posted: Thu Feb 13, 2014 1:59 pm |
|
|
Soulfly |
also
The positive arguments for the retention of the British pound sterling (GBP) by an independent Scotland outweigh the arguments for the establishment of an independent free-floating currency argue Deutsche Bank.
In September 2014 the Scottish people will vote on independence from the UK, which has raised the issue of what kind of currency regime an independent Scotland would face.
The current Scottish government has made it clear that it wishes to keep the British pound sterling as opposed to introducing an independent free-floating currency.
The idea being proposed is that an independent Scottish economy operates within a 'Sterling Zone' - the closest and most obvious comparison being that of the Eurozone.
The benefits of keeping the British pound sterling
There are two reasons why the Scottish Government have proposed keeping the British pound.
Firstly, they believe voters will be more likely to vote for independence should sterling be retained.
Secondly, it makes economic sense.
Deutsche Bank's Macro Strategist Oliver Harvey point out the following economic benefits of sticking with Sterling:
Scotland’s business cycle is highly correlated to that of the rest of the UK which is by far Scotland's most important trading partner. It is even more correlated to the rest of the UK than certain English regions (Yorkshire and Humber, the East Midlands). Therefore, the idea that currency devaluation will boost Scottish exports fails to stand.
The argument that Scotland would not be able to finance the stock of debt it assumes from the rest of the UK by gaining fiscal independence and ceding monetary independence is seriously flawed. Instead, the risks associated with adopting a different currency could be far greater.
Were existing liabilities transferred into Scottish currency, foreign investors would not only be instantly exposed to currency risk, but it would also provide a huge incentive for the Scottish government to monetize the debt.
This could spark a crisis in investor confidence and capital flight. The massive spikes in peripheral bond yields during the height of the Eurozone crisis were associated with precisely this phenomenon as mark et priced in monetary union breakup.
Scotland would cede a substantial part of policy independence by being forced to defend the purchasing power of its independent currency.
Keeping the pound could be a crucial factor in retaining investor confidence in an independent Scotland.
Scotland would accrue the advantages of ‘importing’ the UK’s inflation regime, further strengthening credibility.
Scotland would incur significant costs by adopting its own currency.
But the UK won't want a Sterling Zone
So, the arguments presented by Deutsche Bank for Scotland using the British pound sterling within a Sterling Zone ultimately hinge on the realistation that there is little benefit to Scotland of adopting its own currency.
The problem for Scotland is that the rest of the UK appears opposed to the creating of a Sterling Zone that is shared between the UK and the Scottish.
Both George Osborne, the Chancellor, and Ed Balls, the Shadow Chancellor, have made clear they are not in favour of the proposal.
So, what would an independent Scotland do?
The answer according to Deutsche Bank would be for the Scottish to peg their currency to that of the UK.
Harvey says:
"If the UK was unwilling to allow Scotland to remain a formal part of sterling area following independence, the Scottish government would have other options to retain the advantages provided by monetary union.
"The Scottish government could peg an independent currency to the pound, either via a conventional peg or currency board similar to the one used by Hong Kong.
"A peg may also provide additional policy flexibility in the event that imbalances were to emerge."
It should be kept in mind however that maintaining a currency pegging regime would also require Scotland to hold sufficient reserves to defend it.
"This may present a problem for a future Scottish government, given that UK reserves are relatively small relative to GDP," says Harvey.
To sum up, Scotland's business cycle is highly correlated to the rest of the UK, it is highly competitive and an exit from the sterling area could spark a market crisis if UK liabilities were transferred.
"We suggest that if the country were unable to remain formally part of the sterling area, it could peg its currency to the pound," says Harvey.
|
|
|
|
Groups
General
Posts
3322
Joined
Aug 06, 2009
Status
Offline
Gender
Male
|
| |
|
Time synchronized with your computer time
Previous 1, 2, 3 Next |
| Page 2 of 3 |
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You cannot attach files in this forum
You cannot download files in this forum
|
Powered by phpBB © 2001, 2019 phpBB Group
|
|
|
|
|
kind post...
