cessna152towser
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Should Scotland have Euro currencyUntil earlier this year, my local bank branch here in the Borders (Abbey plc) was prepared to issue me with English notes on request when withdrawing cash as it is unusual for me not to cross the border into England at least twice per week. Earlier this year the bank introduced a new policy of issuing Scots notes only and I am now unable to obtain English notes unless one of the tellers happens to have a few in her till which another customer has deposited. I would applaud Abbey for introducing their Scots note policy but for the fact that I am often greatly inconvenienced because so many English retailers won't accept Scots notes and I often end up making a deposit at an English branch of Abbey and withdrawing a similar sum in English money. This morning I suggested to the cashier that maybe we should let the parochial English keep their little pound and, like the Irish, join the euro which is much more widely accepted. She was horrified at the suggestion and said it would cause a lot of inconveneience in converting mortgages etc. but other countries have done it and I wonder if Scotland is missing an opportunity here.
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Avatar
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That really sucks - its funny you never have any trouble using NI or Scottish notes in the opposite country, but in England the seem to have a real attitude about. Personally if it happened to me I'd make sure I had the correct change or as close as and just leave it on the table and walk out with whatever - see what kind of response that gets. I can understand you trying to circumvent the problem - but avoidance is no good really - its a bit like bullying - you have to tackle the problem straight - im sure if Martin Luther king thought it was more convenient to paint his face white we'd still be living in an openly racist society. - sorry went off on a bit of a tangent there 
But yeah I the Euro is a good idea I think - but we'll have to wait until after independence and even then they probably still wont accept them in England.
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Mctosh45
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Cessna152tower,
It's not quite the qustion you asked but if the English bank has no problem takeing Scottish notes why do the retailers?
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SLG
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The Euro would be a wonderful thing in terms of ease of use throughout Europe. I am totally for it on that count. I don't think it would be too much hastle to convert expecially as we could draw on the experience of other countries doing this. I would also much rather, at the moment, that we had interest rates set by the ECB rather than the Bank of England.
However I'm undecided whether it would be in the best economic interests of the country be in the Euro rather than have an independent Scottish currency.
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Reluctant Hero
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I think in an independent Scotland that being in the Euro would be a good thing. Having a stable currency would be paramount in building a strong healthy economy. I think it would make trade with other European countries as well as the rest of the world easier.
On a side note, whatever happened to Gordon Brown's 5 tests that he would apply before joining the Euro? It has gone remarkably quiet on that front.
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Niall
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A Chairadean mhath.
The Euro would be an unmitigated disaster for Scotland. Firstly the interest rate would be set by the ECB (European Central Bank) which generally favours the continental style economies of France and Germany. Scotland has a maritime trading economy which requires a totally different approach.
Secondly the Euro is in deep trouble. More capital is flowing out of the eurozone than is flowing in. Only intervention by the ECB in buying Euro's is keeping its value stable but this cannot go on indefinitely. At some point the Euro will have to be devalued which will hit the Eurozone economies really hard. The crash when it comes could well cause the collapse of the EU project.
Thirdly France and Germany are violating the Eurozone stability pact by issueing(Printing) more Euros. This is causing inflation and extra burdens on the other Eurozone members like the Netherlands and Ireland. Should either of the economies of France or Germany collapse a la Weimar republic style then the other Eurozone members will have to bail that economy out or go under themselves. For example should France go bankrupt (its closer than you think) and Scotland were in the Eurozone then Scotland would have to find FIVE YEARS GDP just to bail its share of France's debt. Thats £230 Billions or €366 billion Euros.
Fourthly I receive confidential briefings from the investors in the money market as part of my Accountancy practice. The Swiss and the Americans strongly advise against investing in the Euro as it is grossly over-valued. These are professional hard headed investors and we ignore their advice at our peril.
When Scotland becomes Independent it should have its own currency, say the Merk. The Swiss have their Franc, the Norwegians have their Kroner and their economies do very well thank you and so will Scotland.
'S mise le meas
Niall.
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Highlander
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And also if Scotland was independent adn had the Euro it still doesn't mean it would be accepted in the rest of the U.K. so negating the point here. The poster at the beginning didn't like the fact that some (not all) places don't accept sterling issued by banks in Scotland but Euros aren't accepted in the u.k. and if scotland had the euro and the rest of the u.k. didn't it still doesn't solve the original problem.
The other point I like to make Bank of England notes are not English notes, they are British/U.K. notes. The Bank of England is British.
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wisnaeme
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| Mctosh45 wrote: | Cessna152tower,
It's not quite the qustion you asked but if the English bank has no problem takeing Scottish notes why do the retailers? |
Totally agree, living down south, I have had problems in the past trying to part with my Scottish currency, once in a heated exchange with mine local shoppie proprietor the polis were called.  On another occassion after buying a round of drinks in a Coventry dive, my friends and I walked out leaving the poured drinks to remain lonely on the bar top.. Yon part of a notice behind the bar was quite correct when it said in large letters, REFUSAL COULD CAUSE OFFENCE. Did I say Scottish currency? Sorry, I should have perhaps written Scottish bank's trading script. Is it not the case that for every promissory note that a Scottish bank issues, an English promissory note originating from the Bank of England and of the same value must be kept in reserve by the Scottish bank that issued it's trading script/promissory note? So while I would welcome the euro with open arms, I would be more happy if it was the euro that the Scottish banks held in reserve and the bank of England could go f*ck its-self. So it appears that the perceived economic system in Scotland and Scottish banks are doing beezness with one hand tied behind their backs. I'm no accountant but am I right in thinking such. Would it not, if such were the case give rise to economic blackmail and overt influence by another much larger region of the UK? Something else also bothers myself, recently there has been a terrible awareness of how financial Institutions are bending the rule book with regards to loans and mortgages. I believe the financial institutions call it insurance protection payments or as the chappie on the telly would say," a nice little earner". If that is the case, could not the Bank of England also have "a nice little earner" by way of their enforced insurance of the the Scottish banks to hold erm "loans" in reserve?
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SLG
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| Highlander wrote: | | The other point I like to make Bank of England notes are not English notes, they are British/U.K. notes. The Bank of England is British. |
English notes are issued by banks based in England. Banks based in Scotland issue Scottish notes.
You could equally argue that the BoE is European.
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Highlander
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| Quote: | English notes are issued by banks based in England. Banks based in Scotland issue Scottish notes.
You could equally argue that the BoE is European. |
The Bank of England is British institution and the notes are therefore British.
I think you miss the point.
What I am saying is that by saying "English notes" you are stating that they are English when in fact they are British. Now it doesn't matter if a Bank in England hands out Bank of England notes. Banks in Scotland do the same (I have had many Bank of England notes from my bank). It is like saying that a bank in france that issues Euro notes then the Euro notes are French notes. When they are not!
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True Scotsman
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I am against joining the Euro & I see it as bad thing as I think it would not benefit Scotland. If an Independent Scotland joined the Euro we would lose the power over monetary policy e.g. Interest Rates. The only benefit I see of the Euro currency is you don't have to change currency when going through too another country.
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Scott2006
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The process of independence from the UK would put a strain on parts of the Scottish economy that would make it a financial mistake to transfer to a new currency such as the Euro within 10 years of independence.
Keeping parity with the British Pound (maybe retaining a currency union) if not desirable would be a neccesity for the initial years of a new Scottish state. Adoption of the Euro is not needed until it is backed by a referendum of the Scottish people. Politicians forcing the Euro on the Scottish people and businesses is a recipe for disaster.
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Avatar
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"When Scotland becomes Independent it should have its own currency, say the Merk"
Niall did you just randomly make that up? or did the currency used to be called the "merk" or what? im just curious as Ive never heard of this "merk" before and it seems a bit of a bizarre name if you just made it up.
But cheers for the info on the Euro it seems to be one of those things that are always swept under the carpet and never get a proper debate.
"I think you miss the point.
What I am saying is that by saying "English notes" you are stating that they are English when in fact they are British. Now it doesn't matter if a Bank in England hands out Bank of England notes."
just to clarify Highlander - you're saying that the bank of england, bank of scotland, bank of NI (bank of wales?)are british notes as they cant be english etc as its the same currency the only difference is which bank produces them?
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Highlander
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What I am saying is; the bank of England produces British notes.
The Bank of England is the U.K. governemnt's central bank. It is British. The bank of England creates notes and carries out financial obligations for the British government. The Bank of England notes are not English notes as they are created by a British government institution for the British people to use. The bank of england is not a "bank" in the sense of a high street bank. Just because it has "England" in the name does not mean it is solely English.
Yeah it is all the same currency "Sterling".
However, there is no legal tender in Scotland since the Bank of England no longer produces £1 notes. In England and wales the only legal tender is Bank of England notes as this is the money authorised by the British Government. So people in England and Wales have every right to refuse your money as it is not legal tender. Scottish banks which issue their own notes are private institutions and the notes are promisary notes. Where as the Bank of England is the central bank of the U.K. government. I think if they just changed the name of the Bank of England then a lot of people wouldn't call the note "English" notes.
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Cymro
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Highlander, Scottish and NI notes are legal tender in England and Wales, so by rights they aren't allowed to refuse them. If it says £ and "Sterling" (and it's not home made obviosly!) then the bank and retailers should accept them.
When ever I'm in Scotland the last thing I do before I leave is withdraw £100 in Scottish notes to use down here, so I don't have to see the Queens face looking at me.
The only problem with Scottish notes are that they are unfortunalty easier to forge than BoE notes so retaillers occasionally refuse them on that ground (my local Chinese takeaway does).
And the BoE is a British institution, not only because it makes Welsh notes as well but because it sets out Taxation levels on behalf of the British Government.
That doesn't make it right, I want a Welsh Central Bank with powers over Welsh taxation and producing Welsh money.
I used to be in favour of the Euro, but I quite like having different currencies in different countries, shows we are in a different place. When I went to Bosnia recently from Croatia, I was told I could use the Croatian Kuna I already had or Euros and some would accept £ Sterling but I went and chaged my money to some Bosnian Marks just to get that feeling of being somewhere else.
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SLG
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| Scott2006 wrote: | The process of independence from the UK would put a strain on parts of the Scottish economy that would make it a financial mistake to transfer to a new currency such as the Euro within 10 years of independence.
Keeping parity with the British Pound (maybe retaining a currency union) if not desirable would be a neccesity for the initial years of a new Scottish state. Adoption of the Euro is not needed until it is backed by a referendum of the Scottish people. Politicians forcing the Euro on the Scottish people and businesses is a recipe for disaster. |
I totally agree. Stick with the British Pound for a period and then assess the best way forward. During the period of uncertainty while the new state is established, the last thing we should be doing is trying to set up a new currency or joining the Euro. Plenty time for that later.
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billalba
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I think you'll find that under the treaty of union that scotland was supposed to have its own mint...so that would mean that the English produced notes..are not "British"....and I really don't mind whether we have our own currency of use the euro...as long as we are not part of the common currency used today...
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IF Convenor
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| Highlander wrote: | | What I am saying is that by saying "English notes" you are stating that they are English when in fact they are British. |
So saying "English notes" implies they are English, but saying "Bank of England" implies it's... erm... British. Run that one by me again would you?
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SLG
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Highlander, how about a campaign to rename the BoE the Bank of Britain. That would save some confusion.
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Cado
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I think the issue of joining the Euro is a far off one. I can't see that there is anything we can't do now that we could under the Euro.
I think this issue causes a lot of confusion for your chappy in the street because IMO they see it as simply an issue of everyone using the same pieces of paper throughout Europe - whereas (as others have pointed out) this is the least important part of it. The meat of the issue is macroeconomic, in that we'd be tied to interest rates set by the Central European Bank. I can't see the purpose of a referendum because I doubt whether the majority of people are in a position to decide for themselves on this issue.
The issues surrounding currency conversion are becoming less significant with the increase in automated means of transactions - ie many going away on holiday will likely use 'plastic' for their purchases and cash withdrawls. Also with the bulk of Europe using the Euro the old problem of countless European currencies has gone anyway.
Ultimately I feel this is a desicion for those at the top end of Govt and those in business. I'm not sure that others outside of this would be thinking economically, rather they'd be voting on other aspects. ie 'being seen to be pro-european', or on conversion issues that they experienced last time they were in Benidorm.
The ability to determine interest rates is one of the primary levers that control the economy - so a desicion not to be taken lightly and by those 'in the know' IMO.
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The Lithgae Jambo
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| Cado wrote: | | The ability to determine interest rates is one of the primary levers that control the economy - so a desicion not to be taken lightly and by those 'in the know' IMO. |
At the moment, we in Scotland could benefit from the eurozone interest rate of 3.25 percent which is somewhat lower than the UK (or should I say, SE England) rate of 4.75 percent.
Not withstanding that, I would argue that structural funds should be used to assist areas which are suffering from too high an interest rate - bringing some fiscal offset to the monetary policy.
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Highlander
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| Quote: | | Highlander, Scottish and NI notes are legal tender in England and Wales, so by rights they aren't allowed to refuse them |
Nope, Scottish and NI notes are not legal tender in England and Wales. Go to the Bank of England web site and look at FAQ.
Also The Bank of England is a British Government central bank. The word England there does not refer to an English government or an English bank. As I said, if the word England wasn't there a lot of people would not refer to the notes as English, well maybe still a lot of ignorant people would like they do now. However calling the notes of the Bank of England English implies that they are just for England. When they are not.
Arguing that the Bank of England is English and the notes English is like arguing that the Ministry of Defence is English, the Army is English etc etc
There are many Banks in the U.K. with names that are area specific does that make them only banks for that area?
The money is all sterling and all the notes are British, they is no exchange rate between them as they are one of the same.
In an indepedent country who would print the currency? The current banks as they do now? All private institutions wanting profit? At least these banks must have the same amount of money held in governments bank of england that they print. What would happen in independece. Would the Scots nationalise the banks?
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Niall
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| Avatar wrote: | "When Scotland becomes Independent it should have its own currency, say the Merk"
Niall did you just randomly make that up? or did the currency used to be called the "merk" or what? im just curious as Ive never heard of this "merk" before and it seems a bit of a bizarre name if you just made it up.
But cheers for the info on the Euro it seems to be one of those things that are always swept under the carpet and never get a proper debate. |
A Charaid.
The Merk was the unit of currency in Scotland until the early 1600's when the Scottish pound took over after the union of the crowns. Have you never heard of the German 'Mark'? Its actually based on the Silver Merk used as currency by the Scottish traders in the hanseatic league. Other currency terms include the Plack and the groat. Perhaps you have sung the song 'Coulters candy' which mentions the 'Bawbee.' The Merk has a long and honourable history and with a strong Scottish economy could well become one of the financial pillers of the world banking system.
Airson Alba!
Niall.
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Mctosh45
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Nice one Niall,
I'd love my currency to be called the "Bawbee" How Scottish , how poetic.
I'm off to buy some coulter's candy!
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Highlander
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| Quote: | | The Merk was the unit of currency in Scotland until the early 1600's |
No it wasn't. The Merk was just a silver coin in the currency of Scotland at the time. Just like the groat, rider, unicorn, plack etc etc. These were just names of the coins that had a valule in pennies, shillings etc.
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wisnaeme
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[quote="Highlander"] | Quote: | | The Merk was the unit of currency in Scotland until the early 1600's |
I like the sound of that, quite apealing. Regaining and putting to practical use something of value and meaning lost to us through the passage of time is a very pleasing thought indeed. Viva le difference.
| Highlander wrote: |
No it wasn't. The Merk was just a silver coin in the currency of Scotland at the time. |
So the S-word Merk was just a siver coin. how condescendingly predictable can a unionist be? Derogatory of something of little importance to their peception of events or values before the great enlightenment of Union are we,"Highlander"?
Many modern day christians still consider AD to be of more relevance to themselves than BC. The use of the four gospels according to Mathew, Mark, Luke and John as a perceived opposite to the teachings of the old testament puts value on that argument.
So the terms pre-union and post-union could perceivably have a relevant cut off point in British history and be of more importance to a pro unionist like yerself then "Highlander? "Wasn't the silver Merk respected then by Scots and foreigners alike? Was it not of value? Was it not of some importance? Was it not of some use,even? Aye right, Maybe the Merk didn't have the right credentials stamped on it, like the queen and her debatable illustrious predecessors head's on it for example? Aye, typical no change, short changing,unionist thought.  Bringing the Merk back could possibly be a workable idea, especially when it wouldn't necessary have the need to prefix the S-word to it as we do now to differentiate beween their £'s and our ain. Wan less S-word to contend with, Is that not a good idea then "Highlander?" Surely that lack of an S-word has merit in its-self for promoting the idea of the Merk as a Scottish currency and Scottish legal tender? Something tangible, identifiable and substantive, sometime of practical use and value even. Something that we Scots can call our own?
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Aventinian
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| Avatar wrote: | | That really sucks - its funny you never have any trouble using NI or Scottish notes in the opposite country, but in England the seem to have a real attitude about. |
I've never had a Scottish note refused in England. Although I have had NI notes refused in both Scotland and England with roughly equal frequency.
| wisnaeme wrote: | | Sorry, I should have perhaps written Scottish bank's trading script. Is it not the case that for every promissory note that a Scottish bank issues, an English promissory note originating from the Bank of England and of the same value must be kept in reserve by the Scottish bank that issued it's trading script/promissory note? |
I recall a thread here against a proposal to do just that - which would apparently have ended the practice of private banks issuing notes. I seem to remember that only about 40% of the value of the notes issued actually has to be held.
| Cymro wrote: | | Highlander, Scottish and NI notes are legal tender in England and Wales, so by rights they aren't allowed to refuse them. If it says £ and "Sterling" (and it's not home made obviosly!) then the bank and retailers should accept them. |
A retailer or bank can refuse custom to anybody they feel like.
Legal tender is a concept about the payment of DEBTS.
I wish more people would grasp this simple concept. And no, incidently, only Bank of England notes and Royal Mint coins are legal tender.
| billalba wrote: | | I think you'll find that under the treaty of union that scotland was supposed to have its own mint...so that would mean that the English produced notes..are not "British"....and I really don't mind whether we have our own currency of use the euro...as long as we are not part of the common currency used today... |
Mints produce coinage, not notes.
| IF Convenor wrote: | | Highlander wrote: | | What I am saying is that by saying "English notes" you are stating that they are English when in fact they are British. |
So saying "English notes" implies they are English, but saying "Bank of England" implies it's... erm... British. Run that one by me again would you? |
Yet you're happy to classify 'Clydesdale' bank notes as 'Scottish notes'?
England is part of the UK, the part where the bank is based.
| SLG wrote: | | Highlander, how about a campaign to rename the BoE the Bank of Britain. That would save some confusion. |
Jim Sheridan MP (Renfrewshire somewhere, I think) introduced an Early Day Motion in the House of Commons to have it renamed the United Kingdom Central Bank. It was well signed-up to by other MPs. Clearly the UK Government has other priorities.
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Avatar
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" Although I have had NI notes refused in both Scotland and England with roughly equal frequency. "
Was that with the really dodgy looking plastic notes?
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IF Convenor
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| Aventinian wrote: | | IF Convenor wrote: | | Highlander wrote: | | What I am saying is that by saying "English notes" you are stating that they are English when in fact they are British. |
So saying "English notes" implies they are English, but saying "Bank of England" implies it's... erm... British. Run that one by me again would you? |
Yet you're happy to classify 'Clydesdale' bank notes as 'Scottish notes'? |
How do you know what I'm happy with? Where did I post my opinion about the Clydesdale bank's paper?
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neil8r
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| Avatar wrote: | | That really sucks - its funny you never have any trouble using NI or Scottish notes in the opposite country |
I have to disagree, i have had no trouble with Scottish notes in Northern Ireland, but NI notes in Scotland caused me some bother, for this reason i don't get overly bothered by the English being funny with Scottish notes.
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neil8r
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| Highlander wrote: |
Nope, Scottish and NI notes are not legal tender in England and Wales. Go to the Bank of England web site and look at FAQ.
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They aren't legal tender in Scotland either, only coins are legal tender in Scotland. Yir credit/debit cards and cheques aren't legal tender either though but nobody has any trouble using them 
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Cymro
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The Bank of England is a British Institution, it does more than just print money. It makes notes for England and Wales. Maybe it should be called the UK Central Bank or something like that, but BoE is simply a 'brand name', in the same way with BP, BA etc.
Scotland and NI also have the right to make its own notes. Paper money is essentially a voucher - a promise to pay. Once upon a time we used to have many more paper money. I think it was largely down to agriculture, with people making promises to pay on paper for livestock as opposed to carrying money. Hence why in Wales many of the old banks (some of which are the biggest in the world now) had symbols of animals. We had 'Banc Y Ddafad Ddu' (Black Sheep Bank) which was a big bank was bought up many many years ago by a bank from the Midlands of England, became the Midland Bank and now the HSBC. The Black Horse on the Lloyds Bank (now Lloyds TSB) is from the time the bank was established by a Welshman (Mr Lloyd) as was called 'Banc y Ceffyl Du' (The Black Horse Bank). I know of some older people who still call it by this name. However they lost the right to print their own money.
So maybe it's right to say 'Bank of England is the only offical tender', but certain banks in the UK are allowed to also produce regional notes, which can be used across the entire country. Ofcourse shops can refuse custom, that is their right but they are 'legal tender' in that I haven't made them myself and are recognised as a valid currency. Some shops here also let you use the Euro and Dollars. As I sad my chinese refuses Scottish notes because they are apparently easier to forge.
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Cado
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I can mind seeing a documentry that explained the origins of bank notes as follows:
People used to pay for everything using gold, silver coins etc. The value being in the precious metal itself. However this became impractical for the wealthy, since it involved them having to carry around large amounts of heavy coinage, it made them very vunerable to robbery etc. So the banks introduced cheques. This allowed them to issue a note to an individual effectivily instructing their bank to pay the indivdual X, therefore removing the need to hand over coins there and then. The individual could then go to the bank and withdraw the coins, or if they had an account there, simply have the value of the cheque transferred to their account.
After a while the banks decided to issue standard 'IOU' notes. The account holder would hand their money to the bank in exchange for bank IOUs, the individual could then use these bank IOUs anywhere. However for the notes to be worth anything, the bank needed to be trusted and solvent, since the value of the note relied on the ability of the bank to be able to honour it. The receiver could then go to the bank and have the value deposited in their account. Bank notes aren't strictly worth anything (I think) - rather the capital is held by the bank, its the receivers perogative to decide whether they trust the issuing institution to be able to honour it or not..
This is why all bank notes have printed on them:
"The Bank of X promise to pay the bearer on demand..."
So Scottish notes (and other UK notes no doubt, except BoE) aren't strictly legal tender, however they should be accepted on the basis that the issuing banks in question are solvent. Also its the same currency so there aren't any conversion issues.
Also, (a guess) the three Scottish Banks are probably the largest independent issuers of bank notes in the UK, as well as being major world banks.
England having no independent issuers of bank notes (to my knowledge). This is why they hate Scottish notes, they're jeolous. 
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I always wanted to (but never had the guts) to walk into a bank, with a £20 note (from that bank) and demand to be given £20 Sterling...I wonder what they'd say....I mean, it does say on the note that they 'promise to pay the bearer on demand'. Assuming you weren't escorted out by security, what would you get?
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sam keir
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i think that scotland wants to be free to choose our own destiny and i think that would include our own money. i personaly would love to see independent scottish money.
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Blackleaf
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Why would you consider ditching the Pound to join the Euro when the Euro has given the member sof the Eurozone sluggish economic growth and are being outperformed by countries such as Britain, the United States and Japan?
Surely it would be economic suicide. Only 12 of the 25 members of the Eu have the Euroe - a minority - and I can't see anyone else joining in the forseeable future.
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Blackleaf
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[img] Having a stable currency would be paramount in building a strong healthy economy[/img]
It hasn't given the French, Germans or Italians a healthy economy.
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Blackleaf
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| Quote: | The Bank of England is British institution and the notes are therefore British.
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Surely the notes that are used in England and not Scotland and Northern ireland are English notes.
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The Lithgae Jambo
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| Cymro wrote: | The Bank of England is a British Institution, it does more than just print money. It makes notes for England and Wales......
Scotland and NI also have the right to make its own notes. ......
So maybe it's right to say 'Bank of England is the only offical tender', but certain banks in the UK are allowed to also produce regional notes, which can be used across the entire country. |
The Scottish and NI banks must deposit sum of money with the BoE identical to the value of the notes they are issuing.
| cymro wrote: |
Ofcourse shops can refuse custom, that is their right but they are 'legal tender' in that I haven't made them myself and are recognised as a valid currency. Some shops here also let you use the Euro and Dollars. As I sad my chinese refuses Scottish notes because they are apparently easier to forge. |
There is a HUGE difference between "legal tender" and "currency". As someone else mentioned, "legal tender" refers to the type and amount of notes and coins that must be accepted in settlement of a debt. That's all.
Currency is whatever is commonly used in transactions.
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Shadowman
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| The Lithgae Jambo wrote: | | Cado wrote: | | The ability to determine interest rates is one of the primary levers that control the economy - so a desicion not to be taken lightly and by those 'in the know' IMO. |
At the moment, we in Scotland could benefit from the eurozone interest rate of 3.25 percent which is somewhat lower than the UK (or should I say, SE England) rate of 4.75 percent.
Not withstanding that, I would argue that structural funds should be used to assist areas which are suffering from too high an interest rate - bringing some fiscal offset to the monetary policy. |
Cutting interest rates does not lead to long-term economic prosperity. If you're sitting there thinking that boosting demand with monetary and fiscal policy automatically leads to greater wealth, you might want to research the relationship between inflation and demand a little more.
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The Lithgae Jambo
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| Shadowman wrote: | | The Lithgae Jambo wrote: |
Not withstanding that, I would argue that structural funds should be used to assist areas which are suffering from too high an interest rate - bringing some fiscal offset to the monetary policy. |
Cutting interest rates does not lead to long-term economic prosperity. If you're sitting there thinking that boosting demand with monetary and fiscal policy automatically leads to greater wealth, you might want to research the relationship between inflation and demand a little more. |
My macroeconomic theory is long forgotten but what I was trying to say that to offset the negative impact of (regionally) too high interest rates, fiscal tools through the structural funds could be used.
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IF Convenor
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If memory serves, the original bank notes could be exchanged for one pound (weight) of sterling silver.
Right now silver is trading at $12.11/oz.
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