John Kay

The inability of democratic politics to handle the aftermath of the 2008 financial crisis has threatened to undermine the apparent consensus on liberal democracy and lightly regulated capitalism that emerged following the fall of the Berlin Wall.

If I represented the Scottish government in the extensive negotiations required by the creation of an independent state, I would try to secure a monetary union with England, and expect to fail.

Today the Treasury released a paper on Currency and Monetary Policy in relation to Scottish independence. John discussed these topics on BBC 5 Live’s ‘Wake Up To Money’. Listen again here.

Many of you will be aware of a poll that was conducted in 2011 in the Scottish Social Attitudes survey. Respondents were asked how they would vote on independence if they could be sure they would be £500 better off. That question produced a 2:1 majority in favour. Then they were asked how they would vote if they would be £500 a year worse off. That question produced a 2:1 majority against.

Confronted with the specifics, rather than the principle, of constitutional change, many voters revert to the status quo.

What would an independent Scotland actually be like? The only sensible answer is that no one really knows.

On the 22nd May, John gave evidence to the House of Lords Economic Affairs committee on the economic implications for the UK of Scottish independence. Watch full coverage here.

The petty, pragmatic character of Scottish concerns is appropriate, and in a sense reassuring. We should feel relieved that the passions expressed at Bannockburn, or Waterloo, or that prompted Paul Revere’s ride, no longer feature in the politics of western Europe.

On the 14th March John gave evidence to the Scottish Affairs Committee as part of its enquiry into The Referendum on Separation for Scotland. Martin Wolf, chief economics commentator for the Financial Times, was also in attendance. The committee focused on the economic issues that would arise in relation to Scottish independence. Watch it in [...]

Legal tender is a concept with no practical relevance. The currency that is accepted is the currency people are willing to accept.