Will Scotland Keep the Pound? A speech for two audiences

Speech given by Mark Carney, Governor of the Bank of England At a lunch hosted by the Scottish Council for Development & Industry, Edinburgh 29 January 2014

The Carney speech shows us how difficult it is to present something quite sensible and balanced without it being subject to some dodgy selective attention by both sides.

What the Yes people heard:

“Scotland is … rich. Scotland will be better … off under independence. Sharing a currency can promote investment. Sharing a currency also helps promote integration. Sharing a currency can also help to increase the mobility of labour and capital, raise trade in goods and services, and improve the flow of technology and ideas. Clearly something must be done”.

What the No people heard:

“Scotland … owe a great debt. Scotland will be overall … worse off under  independence … large costs of giving up an independent monetary policy tailored to the needs of the region … output will fall, unemployment  increase and current account deteriorate … Being in a currency union can amplify fiscal stress, and increase both the risks and consequences of financial instability … Scotland and the rest of the UK are highly integrated …a durable, successful currency union requires some ceding of national sovereignty”.