The Pound, the Euro and Other Scottish Pink Herrings

The crisis in euroland continues unstaunched and, perhaps, irrevocably. Naturally, being self-obsessed sorts and this being the week it is, one is drawn to consider the impact this must have on Alex Salmond and the prospects for Scottish independence. Plainly, the currency question is a difficult one for the First Minister. While the euro seemed solid it was at least straightforward, even though one wondered if swapping monetary policy set by the Bank of England for monetary policy set by the European Central Bank would necessarily be a great bargain. But the euro is no longer solid and uncertainty reigns.

So one can appreciate why George Osborne has intervened, arguing that an independent Scotland might not be able to keep the pound sterling and would, instead, be compelled to live in the eurozone’s charnel house. Equally, one can appreciate that there are obvious questions to be asked about an independent Scotland’s credit-worthiness.