Monday 25 October 2010

Monetary and Scottish economics

First please take time to listen to an excellent interview with Kevin Dowd.

Professor Dowd has (along with Martin Hutchinson) just brought out Alchemists of Loss, which deals with the ongoing financial crisis from a libertarian perspective. Like myself, Professor Dowd is involved with the Libertarian Alliance.

Here's a Scottish-related quote:

As for the banking system, we would suggest that the role model is Scotland pre-1845, when the Scottish banking system was virtually free of state control, unhindered by a central bank, and equally admired and envied across the world – and copied by countries such as Canada and Australia. In all three countries, free banking systems operated highly successful for very long periods of time.

Note the non-role for a central bank and think about the consequent conservative approach to financial engineering.

Next I recommend listening to Professor Andrew Hughes Hallett explaining why Scotland's economic prospects are not quite what we are used to hearing from conventional news sources.

I too think that Scotland's financial position as an independent country would be perfectly viable provided we adopt sound policies. That's the key condition. The folk marching along Princes Street on Saturday would have better employed reading Professor Dowd's book.

(Thanks to the Cobden Centre and Newsnet Scotland for these links)

1 comment:

David Farrer said...

Comments made on previous template:

He's wrong about Gibraltar and Man - they are not part of the UK.  (Nor are the Channel Islands.)

27 October 2010, 14:11:12 GMT+01:00
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james higham
I have made an adendum to my post, quoting you verbatim, David.

27 October 2010, 08:00:40 GMT+01:00
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David Farrer
Much like now I imagine.  
"Scottish international exports in 2008 (excluding oil and gas) are provisionally estimated at £20.7 billion, of which £14 billion is attributable to manufacturing sector companies. This represents an increase in overall exports of £1.7 billion since 2007, due to a rise in the manufacturing sector exports of £935 million and a rise in service sector exports of £715 million.  
• The top 5 exporting industries in 2008 were chemicals (including refined petroleum products) (£3.5 billion), food & beverages (£3.4 billion), business services (£2.3 billion), the wholesale, retail & accommodation sector (£1.4 billion) and manufacture of machinery and equipment not elsewhere classified (£1.4 billion). Together these industries accounted for well over half of total exports from Scotland."  
See here for details of the £63 billion exported to the world including the rest of the UK:  
Alcohol makes up around 6%

27 October 2010, 06:46:31 GMT+01:00
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james higham
What would Scotland be producing and exporting, David, aside from whisky?  I'm not saying they wouldn't but would like to know what would sustain the Scottish economy.

26 October 2010, 21:55:06 GMT+01:00