The choice of currency and policies for an independent Scotland: a debate through the lenses of different economic paradigms

Paloni, A. (2022) The choice of currency and policies for an independent Scotland: a debate through the lenses of different economic paradigms. Real-World Economics Review, 101, pp. 90-106.

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Abstract

This paper analyses three issues that are widely regarded as key policy decisions of an independent Scotland. The first is the choice of the exchange rate regime. The second is the policies that it may be necessary to adopt given that choice. The third is the characteristics of the transition period to an independent currency and its duration. The analysis, which is based only on economics theory, contrasts the standard orthodox approach to the Post Keynesian and Modern Money Theory frameworks. It shows that progressive policies can be underpinned by heterodox economics theory and, in particular, that the government in an independent Scotland can make choices that give it the policy space to pursue progressive domestic objectives. Whether these objectives are actually attained will naturally depend on the specific political circumstances at the time and on the government's enlightened use of the available policy space, but this is outside the scope of the paper.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Paloni, Dr Alberto
Authors: Paloni, A.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Real-World Economics Review
Publisher:PAE News
ISSN:1755-9472
ISSN (Online):2055-3668
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