A quick switch to a new currency would create a risk of capital flight with people, businesses and investors moving money, jobs and investment out Scotland.

Even proposing it during a campaign would mean people move money, jobs and investment in case there was a devaluation. Just imagine the political and economic cost that would be paid.
Furthermore uncertainty for people over what would happen to their income, pension, mortgage and savings if held cross border.
Quebec suffered this in a major way in its referendum (with a quick change currency proposal) and the jobs and investment have not fully returned.
A further issue is the cost of borrowing for public services investment. If you ask the world’s savers to fund your public borrowing at a time when you are yet to get it on a sustainable footing and then add the risk of currency changes it will be very expensive.
This will harm your ability to fund public services and pass on expensive debt to the next generation. We can try and wish all of these issues away. They are complex, they are difficult, but they are reality.
Going into a referendum campaign with such a currency formulation would be a losing ticket that would also provide real risks to the economy right now. It makes no sense at all.
H/T to @AndrewWilson for all his thoughts that I’ve just quoted
@ThreadReaderApp
Unroll

More from Trading

You May Also Like

One of the most successful stock trader with special focus on cash stocks and who has a very creative mind to look out for opportunities in dark times

Covering one of the most unique set ups: Extended moves & Reversal plays

Time for a 🧵 to learn the above from @iManasArora

What qualifies for an extended move?

30-40% move in just 5-6 days is one example of extended move

How Manas used this info to book


Post that the plight of the


Example 2: Booking profits when the stock is extended from 10WMA

10WMA =


Another hack to identify extended move in a stock:

Too many green days!

Read