Wednesday, 3 September 2014

Scottish Monetary Policy

If Scotland continues to use sterling despite no longer being part of a currency union, we will have no choice but to accept whatever monetary policy the UK decides upon.  There are 58 million in the UK and 5 million of us.  They will have no more reason to take account of a foreign Scotland when determining their monetary policy than the USA has to take account of Panama when determining theirs.

Deduct the forty odd Scottish Labour seats and the chances are that the next UK government is Conservative.  They will implement Conservative monetary policy in the UK and that policy will apply in Scotland because Scotland will not have its own monetary policy.

Perversely this means that, so long as Salmond’s Currency Plan B remains the use of sterling without agreement,  voting 'yes' in the referendum results in the imposition of a Tory government's monetary policy in Scotland.

Perhaps this is what he means when he promises that Scotland will get what it votes for.