And I agree: that might be necessary if Scotland did, as the archly neoliberal thinks appropriate, fix its currency against sterling. Of course in that case Scotland would have no choice but spend all its earnings trying to maintain parity with the pound, crushing economic growth in the process.
But if Scotland had its own currency and let it float, as it would have to, Scotland could concentrate on delivering full employment instead.
Entirely true, an independent Scotland with its own currency could print as much as it likes in order to stimulate the economy. There might be the odd side effect or two of course:
June 7 2018 at 11:45 am
Correct me if I’m wrong Richard, but if Scotland had a free floating currency, but a huge budget deficit, would that currency likely lose value quickly?
And if the currency starts losing it’s value quickly that will make us Scots poorer, as inflation goes up and our imports cost more.
Richard Murphy says:
June 7 2018 at 12:32 pm
Do you know it will have a huge budget deficit?
A trade deficit is a threat: but is a budget deficit really a cause when the reality is that these need never be funded with foreign currency borrowing?
In other words I do not agree with your hypothesises
A currency in greater supply does not fall in value. That’s just so neoliberal to insist that it does.