• Text size      
  • Send this article to a friend
  • Print this article

Academics dispute currency warning

THE campaign group Academics for Yes has dismissed warnings that a currency union between an independent Scotland and the rest of the UK would be doomed to fail.

In a letter to The Herald today, economists from the group questioned an analysis from Professor Ronald MacDonald, of Glasgow University.

The world-renowned currency expert warned this week that Alex Salmond's proposal for a pound-sharing deal would collapse within months as Scotland's oil-based economy diverged from that of the UK.

He said the break-up would lead to a recession costing both countries billions - a reason, he claimed, why the UK Government would not sign up.

But Academics for Yes said the scenario was a possible concern only in the long term. The economists, including Professor Andrew Cumbers of Glasgow University, write: "We infer that Professor MacDonald's concern is that the Scottish economy would be too strong for a currency union with the rest of the UK.

"If that is what he believes, we challenge him to be explicit.

"While we can see such a scenario as possible in the long term, particularly if the rUK fails to adopt responsible fiscal, monetary and industrial policies, we do not believe it to be a concern in the medium term."

Contextual targeting label: 

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.