So, Scotland goes all in today; what is your take on the scottish independence referendum?

I posted this on EconTalk over at LinkedIn, thought I’d put it here as well.

So, Scotland goes all in today; what is your take on the scottish independence referendum?

Will it be a yes or a no? And i know that this is a question that is objectively hard to answer, but which would be economically more beneficial for them?

My own take is that IF they decide to leave the UK they will need to settle the question of their currency quickly. Britan says that (as far as i am concerned, correct me if i’m wrong) that they can’t use the pound. So what can they do in the short term? They’d need to create their own currency which apart from being extremely expensive is connected with all sorts of uncertainity and high transaction costs for external parties. If they’d create their own currency surely it would need to be pegged to 1; The british pound or 2; the Euro. A free floating untested currency would be a very high stakes game to enter as I see it. To instill trust in the market and any export partners the currency would need to be pegged to a tried and tested currency.

Anyways, let’s see how this goes. I just thought i’d get a discussion going here about it.

The mailman come bearing great news!

Recieved this great piece of news in the mail this Friday; passed the last exam in financial control with destinction! It’s the highest grade that we can get at our school so I guess it’s comparable to a ‘straight A’. I know that I am tooting my own horn here, but that made my Friday. On to the next! DSC_1663

The course in international economics is up and running and now I have to start thinking about something related to that to write a debate article about. It must be tops 5000 words and must use statistics from the statistics tool Gap Minder. I have some ideas right now but I’m yet to start writing. I can recommend Gap Minder if you ever need a vast array of global statistics, I’ve never used it before we started this course but there seems to be A LOT of stuff there. Check it out if you need to gather some statistics.

 

So long!