THM, if all that is true then why did the independent Scottish fiscal commission recommend a currency union if it’s so totally unworkable? Seems to me the idea works so long as you accept the compromises that would have to be made to the deal with the risk.
For rUK it’s technically workable, but the risks associated with it, make it completely unacceptable.
For iS it’s perectly workable, if you don’t want independance…..
I thought this was interesting from Standard and Poor’s (from the BBC)
Standard and Poor’s, in its assessment on independence, said there were benefits for Scotland going it alone, but raised concern it may begin life having to cope with issues like comparatively high levels of public debt, sensitivity to oil prices and “potentially limited” monetary flexibility.
The agency added: “On the other hand, if this were to happen, it could bring benefits in terms of reducing the size of the Scottish economy’s external balance sheet, normalizing the size of its financial sector, and reducing contingent liabilities for the state.
“In short, the challenge for Scotland to go it alone would be significant, but not unsurpassable.”
Someone else who seems to agree that iS is workable BUT that the ballance sheet might not be as rosey (certainly in the short term) as being portrayed by AS.