Scotland's Currency Conundrum: Breaking Free from Sterling

An independent Scotland would not truly be free if it continues to rely on the pound sterling as its currency, says economist Professor Thibault Laurentjoye.

This is because Scotland would have no control over monetary policy and would be subject to external constraints, much like a country with a current account deficit.

The only way for Scotland to achieve genuine policy autonomy is by issuing its own currency and central bank, allowing it to navigate international monetary waters more effectively.

A managed reference to a basket of sterling, euro, and dollar could provide flexibility while spreading external shock exposure.