A SENIOR economist has called for two major constitutional issues to be resolved for voters before the independence referendum on September 18.

Jeremy Peat, director of think-tank the David Hume Institute, has flagged as "critical" the need to resolve the currency issue before the vote. He warned the option chosen by an independent Scotland would have serious implications for monetary and fiscal policy, as well as the economy in general.

He also demanded greater clarity on whether there would be further devolution should Scotland vote no.

Writing in The Herald today, Mr Peat signals his preference for retaining ­sterling in the event of a Yes vote. "I agree that retaining sterling is far and away the preferred option," he said.

"The prospect of either adopting the euro or setting up Scotland's own currency fills me with dread."

He called for the debate to move on from the ­"pantomime" that involves the two sides disagreeing over whether a sterling currency union is possible.

"Thank goodness our Canadian friend at the Bank of England [governor Mark Carney] has at least agreed that the issue should be discussed. Please let that proper discussion commence - with a focus on the economic analysis, not the political rhetoric."

He added: "Time is not on our side and again reaching referendum date without clarity on this critical issue is close to unthinkable."

While most parties have indicated further devolution is desirable, Mr Peat said voters "need to know what enhanced financial devolution would be planned before casting that vote".