If Ireland Left The Euro And Asked To Join Sterling...

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Smurf

Smurf

Private Member
Joined
May 15, 2003
Giving them monetary union with us (UK or independent Scotland) and therefore a veto on our economic policy. Would you not expect to be asked if you approve considering it all but ends our 'independence'?
 
As far as I'm aware the Irish punt was linked to Sterling upto 1979. They even changed to decimalisation at the same time as the Sterling. The only reason they left was to join the .

No reason Scotland should not be the same, or similar, in the years ahead.
 
Us pursuing a different economic policy from the rest of the UK but still having monetary union has serious risks. For us and them. Hasn't the Euro taught us anything?
 
But we're not talking about the .

You're example was of a link between the currencies used in the British Isles where the roots of our civilisation are extensively linked.

The same cannot be said for Germany and Greece et al.
 
Jack said:
But we're not talking about the .

You're example was of a link between the currencies used in the British Isles where the roots of our civilisation are extensively linked.

The same cannot be said for Germany and Greece et al.
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However, we want independence to pursue a different economic policy. For England to have monetary union with us is something they will not risk. The Euro is proof that you can't have currency union unless there is political union.
 
Smurfy said:
Giving them monetary union with us (UK or independent Scotland) and therefore a veto on our economic policy. Would you not expect to be asked if you approve considering it all but ends our 'independence'?
Click to expand...

no it'd be grand
 
Smurfy said:
However, we want independence to pursue a different economic policy. For England to have monetary union with us is something they will not risk. The Euro is proof that you can't have currency union unless there is political union.
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Not sure the Republic of Ireland would agree with you that they were not independent all these years.
 
Jack said:
As far as I'm aware the Irish punt was linked to Sterling upto 1979. They even changed to decimalisation at the same time as the Sterling. The only reason they left was to join the .

No reason Scotland should not be the same, or similar, in the years ahead.
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\that's right to a point. The punt tracked the until 1979 when it left in order to fulfill the requirements of the Exchange Rate Mechanism which the UK was not a member of at the time. The UK did join the ERM and then had to track other European currencies within a specified band (most notably the Deutschmark). AS we all recall, that ended in disaster on Black Wednesday when the UK was raising interest rates on an hourly basis to try and keep the tracking other currencies when it came under pressure from speculators.

To my mind, having your own currency is a great way to manage your economy as long as its strong enough. It means you can allow devaluation to do the donkey work in a slump rather than having to actually cut prices and salaries at home which people feel much more directly (remember Wilson's "pound in your pocket" explanation). One of the arguments for independence used to run that UK interest rate and monetary policy was made mostly for the benefit of London. That's probably fair policy given the economic importance of the City but it is also set with an eye on the rest of the UK economy.

Scotland could go for its own currency. It would certainly give more independence. The other two options are a choice between a rock and a hard place. The would be managed in the remaining UK's interests with no regard to Scotland but the Euro is like the current situation on steroids given the weight of the German and French economies as their requirements drive the agenda as much as London does now.

I suppose if it was me, the good times look after themselves so I would lean to considering who would you want to have to turn to when the shit hits the fan. In Darien/Long Recession/1929 and the recent crash it was England/UK but linked to the union (not always very successfully or humanely). In an independence scenario, Ireland's experience with the crash has been hard but they're pulling through it, I suspect England would be unsympathetic. For those reasons, if your going for independence, I would go with the Euro.
 
[MENTION=12263]Kurt[/MENTION] having the option / would be a good start.
 
Smurfy said:
Giving them monetary union with us (UK or independent Scotland) and therefore a veto on our economic policy. Would you not expect to be asked if you approve considering it all but ends our 'independence'?
Click to expand...

Smurfy said:
However, we want independence to pursue a different economic policy. For England to have monetary union with us is something they will not risk. The Euro is proof that you can't have currency union unless there is political union.
Click to expand...

Word for word what Darling said last night on STV, I'd like you or him to provide evidence of that,please.

In the mean time, here's some sensible points of view

Currency Wars – The Empire Strikes Back
 
Why would Ireland want to leave the Euro and join the ?

Leaving the Euro and returning to their own currency maybe I could see.

At the end of the day Ireland and Iceland are both recovering pretty well from the massive crash not too long ago.

Meanwhile Scotland continues to be more solid economically than the UK as a whole as the UK's credit rating slowly slips down the pan.

I remember a few years ago it was a big deal that leaving the UK was going to be a terrible blow to Scotland because we would lose out AAA credit rating. Well we've lost that already while still inside the UK.
 
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