Sam Bowman speaks to BBC Radio Scotland and BBC Radio Wales about new ASI report “Quids In”

Research Director of the Adam Smith Institute and author of the ASI’s report “Quids In: How sterlingization and free banking could help Scotland flourish” speaks to Good Morning Scotland (BBC Radio Scotland) and Good Morning Wales (BBC Radio Wales) about his proposed policy of ‘adaptive sterlingization’ for an independent Scotland.

Listen to Sam’s interviews here and here.

The report, “Quids In: How sterlingization and free banking could help Scotland flourish”, can be read and downloaded for free here.

ASI report “Quids In” is featured in The Guardian, The Sun, The Telegraph, and The Times

A new report from the Adam Smith Institute, “Quids In: How sterlingization and free banking could help Scotland flourish”, was featured in The Guardian, The Sun, The Telegraph and The Times.

The report argues that an independent Scotland could have a more stable economy than the rest of the UK if adopted a policy of, what it calls, ‘adaptive sterlingization’, which combines unilateral use of the pound with financial reforms to remove government protection of established banks.

From The Guardian:

An independent Scotland that carried on using the pound without the permission of the rest of the UK would have a stronger economy than it does now, a free-market thinktank said on Thursday.

The Adam Smith Institute said the country would not only survive but thrive outside of a formal currency union provided there were changes to the banking system to inject competition and reduce risk-taking.

From The Sun:

Sir Ian Wood said Alex Salmond’s SNP has over-estimated the amount of oil – and tax revenues – by up to 65 per cent.

Better Together campaign lead Alistair Darling said the news was “devastating” for Mr Salmond’s plans.

It came as a think-tank claimed Scotland would “thrive” using the Pound outside a currency union.

The Adam Smith Institute said the “dollarised” economies of Latin America were proof countries can flourish when they adopt another’s currency.”

From The Telegraph:

Yesterday the Adam Smith Institute suggested Scotland would actually benefit from adopting sterlingisation – using the pound without a formal currency union – after independence.

The idea, which has been floated by the First Minister as a potential backup plan, would create a more stable financial system by freeing banks of certain constraints, researchers found.

From The Times:

An independent Scotland could flourish by using the pound even without the permission of the rest of the UK, according to a think-tank.

The Adam Smith Institute points to Panama as a successful example of an economy piggybacking on a neighbour’s currency — the US dollar.

It said it was neutral on Scottish independence but said the the nationalists’ plan to continue with the pound — which many regard as a stumbling block — could work very well.

The report, “Quids In: How sterlingization and free banking could help Scotland flourish”, can be read and downloaded for free here.

ASI Research Director writes for CityAM, detailing the policies proposed in new report, “Quids In”

Research Director and author of the ASI’s new report “Quids In: How sterlingization and free banking could help Scotland flourish”, Sam Bowman, writes for CityAM, detailing his proposal for ‘adaptive sterlingisation’:

When Scottish voters go to the polls in their independence referendum next month, they may ultimately make their decision on the basis of a single question: if we voted Yes, what currency would we use? The question has massive implications for Scotland’s economy, and since the “Plan A” of a formal currency union between Scotland and the rest of the UK was ruled out by the chancellor, doubts about “Plan B” have dominated the campaign.

Alex Salmond has suggested that “Plan B” may be unilateral use of sterling without a currency union, a system known as “sterlingisation”. As I argue in a new paper for the Adam Smith Institute released today, with the right reforms to Scottish financial regulation, Plan B should be Plan A.

The “adaptive sterlingisation” plan would work like this: the Scottish government would announce no change in its use of sterling as the currency it does business in. Scottish banks currently issue their own notes that are backed on a one-to-one basis by sterling notes held at the Bank of England (million pound “Giants” and hundred-million pound “Titans”). Post-independence, they should be free to issue notes backed by their sterling reserves without restriction.

Read the rest of the op-ed here.

The report, “Quids In: How sterlingization and free banking could help Scotland flourish”, can be read and downloaded for free here.

The report argues that an independent Scotland could have a more stable economy than the rest of the UK if adopted a policy of, what it calls, ‘adaptive sterlingization’, which combines unilateral use of the pound with financial reforms to remove government protection of established banks.

ASI report “Quids In” is featured in BBC News and STV articles

A new report from the Adam Smith Institute, “Quids In: How sterlingization and free banking could help Scotland flourish”, was featured in BBC News and STV articles.

The report argues that an independent Scotland could have a more stable economy than the rest of the UK if adopted a policy of, what it calls, ‘adaptive sterlingization’, which combines unilateral use of the pound with financial reforms to remove government protection of established banks.

From the BBC:

The free market think tank said that dollarised economies such as Panama show that banks can do better without a central lender of last resort.

The pro-Union Better Together campaign said using the pound in the way Panama used the dollar would be “a disaster”.

Yes Scotland insisted that there would be a post-independence currency union.

But a new report, written by the research director of the Adam Smith Institute, Sam Bowman, has argued that sterlingisation – using the pound without the use of a central bank – would be “a significant improvement on Scotland’s current arrangements”.

Opponents of independence have cited the use of the US dollar by some Latin American countries as a model that Scotland should not follow, but the Adam Smith Institute claims that the economies of Panama, Ecuador and El Salvador “demonstrate that the informal use of another country’s currency can foster a healthy financial system and economy”.

The report reads: “Under sterlingisation, Scotland would lack the ability to print money and establish a central bank to act as a lender of last resort.

Read the full BBC News article here.

From STV:

A new report from the Adam Smith Institute said that “sterlingisation”, combined with reforms to banking regulations, could lead to banks taking fewer risks, reducing the likelihood of future financial crises.

Sam Bowman, research director at the free-market research body and the author of the report, said Scotland was “almost uniquely primed for such a system of ‘adaptive sterlingisation”‘.

Read the full STV article here.

The report, “Quids In: How sterlingization and free banking could help Scotland flourish”, can be read and downloaded for free here.

 

ASI report “Quids In” is featured in The Herald and The Scotsman

A new report from the Adam Smith Institute, “Quids In: How sterlingization and free banking could help Scotland flourish”, was featured in The Herald and The Scotsman.

The report argues that an independent Scotland could have a more stable economy than the rest of the UK if adopted a policy of, what it calls, ‘adaptive sterlingization’, which combines unilateral use of the pound with financial reforms to remove government protection of established banks.

From The Herald:

Using the pound without a currency union and reforming Scottish banking regulations could help an independent Scotland flourish, according to the right-wing free market think tank, the Adam Smith Institute.

Financial experts and UK politicians have warned that so-called sterlingisation would leave the Scottish economy adrift without the support of a central bank with fears raised of banks relocating south of the border and even capital flight away from Scotland.

But the Institute argues that “Britain’s obstinacy could be Scotland’s opportunity to return to a freer, more stable banking system”; that “adaptive sterlingisation” would be a positive boon for a newly-independent Scotland as it would create a more stable financial system and economy and reduce risk-taking within the banking sector.

Read The Herald article here.

From The Scotsman:

A report, published today by the Adam Smith Institute, claims that a particular form of “sterlingisation” could also be more effective than Alex Salmond’s Plan A for a formal currency union.

The institute recommends a currency arrangement described as “adaptive sterlingisation”, which would see an independent Scotland adopt a policy of unilateral use of the pound outside a currency union, combined with reform of Scottish banking.

The paper argues that such an approach would cut risk-taking and increase competition in banking, significantly reducing the prospect of large-scale bank panics and financial crises.

Read The Scotsman article here.

The report, “Quids In: How sterlingization and free banking could help Scotland flourish”, can be read and downloaded for free here.