Steve Davies and Philip Booth appeared on BBC Radio 4’s Analysis programme to discuss the future of Scottish currency in light of a referendum on independence. Given the possibility of Scotland becoming independent, there is growing concern both amongst the Scottish public, and in Westminster, surrounding the future of the Scottish pound.
Dr Steve Davies explained how the Bank of England deals with Scottish currency. Philip Booth later outlined how Scotland could become independent and still use the English pound. By establishing a currency board, Scotland could keep using English money, without the cooperation of the Bank of England, much like the arrangement the Irish government established after independence.
Philip Booth suggested there could be a free banking system in which banks could issue their own currencies. There is no reason why the Euro, pound sterling and a new Scottish pound could not be used at the same time, Philip Booth argued.
Listen to the full programme here.