The new Scottish independent agenda….

Well there is the possibility that an independent Scotland might get greater oil and gas revenues, but these have declined quite dramatically over the last few years anyway.

Scottish public spending is *very* high, much higher than in the rest of the country, which might suggest that a new Scottish government would need to raise taxes.

An independent Scotland would also find it quite difficult to borrow to fund the massive deficits it would be running right now. Presumably, it wouldn’t have its own currency, either using the pound or the Euro – and, without sovereign monetary policy, it would be vulnerable to self-fulfilling sovereign debt crises just like Ireland or Spain.

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