Sir Andrew and Scottish National Party

Scottish National Party: Their stance is that keeping the pound, through a currency union like today , is not compatible with political independence. If Scotlands economy outperforms the rest of the UK, as the Scottish National Party believes it will, then all will be fine. But if it does not, Sir Andrew and Sir Martin point out that things can go awry because Scotland will not have the levers to regain competitiveness through currency devaluation. The eurozone might have worked better if its members had given up more of their independence; the economic woes of the Club Med countries over the last few years show what happened when they did not, according to The Independent. Meanwhile, Royal Bank of Scotland warned again yesterday that a yes vote could hit the groups credit rating and prospects. In March, Mark Carney, the Bank of Englands Governor, suggested that independence might prompt RBS to move its headquarters to England and Drowned out by the crowds cheers at Hampden Park, an important intervention in the debate over Scotlands economic future went largely unnoticed south of the border. In a newspaper article this week, Sir Andrew Large, the former Bank of England deputy governor, and ex-Prudential chairman Sir Martin Jacomb argued that the Scottish First Minister Alex Salmond was deceiving the electorate over plans for a currency union in the event of a yes vote. The duo suggest that Scotland could use the pound without formal agreement, as with Kosovo and the euro, or peg a Scottish pound to the UK pound, but they highlight the potential downsides of Scotland having no influence over interest rates and needing to build up its own multibillion-pound currency reserves. Mr Salmonds plan is to share the pound in a sterling zone with the rest of the UK, but this idea is not proving popular in the Treasury. (news.financializer.com). As reported in the news.