An Open Letter from senior Economists ahead of the SNP conference.
International economists have urged SNP members to back a new Scottish currency ahead of the debate at the partys conference tomorrow. Signing a letter opposing Sterlingisation, the esteemed economists argue that the Growth Commission proposal would hinder a progressive economic platform:
“In recent months there has been debate and criticism of the Sustainable Growth Commission. There are several areas of concern, ranging from currency choice and deficit reduction to the implementation of a Green New Deal, recently raised by Nicola Sturgeon.
We are gravely concerned about the direction the Growth Commission would take us. The report reheats much of the failed economic orthodoxy that has led to the present economic and social crisis, stemming from the 2008 financial crash.
The present position of the SNP leadership on currency which supports Sterlingisation follows the framework set out by the Growth Commission’s six tests. These tests are obstacles to developing an independent currency, and would leave Scotland without control of fiscal and monetary policy and the capacity to float an independent exchange rate. This means Scotland would, under current UK economic settings, be unable to develop a long term, investment led economic strategy.
Furthermore, the poverty and inequality that scars Scottish life and the climate emergency we face will not be addressed by the Growth Commission proposals which entrench failed thinking on these matters.
It is of the utmost importance that SNP members attending conference are clear sighted about these issues. In particular we insist that they remove the six currency tests, to then build a visionary and progressive platform that can bring about the necessary economic transformation needed for the challenges of the 21st Century.”
Bill Mitchell, Professor of Economics at the University of Newcastle, New South Wales, Australia .
Richard Murphy, Professor of Practice in International Political Economy, City, University of London.
Dr Steven Hail, Economics lecturer and author of “Economics of Sustainable Equality”.
Warren Mosler, American economist, hedge fund founder and co-founder of the Center for Full Employment And Price Stability at University of Missouri-Kansas City.
Fadhel Kaboub, President of the Global Institute for Sustainable Prosperity and Associate Professor of economics at Denison University.
Earlier this year saw the launch of a new economic think MMT Scotland1. Their board of advisors, including advisor to Bernie Sanders Stephanie Kelton, opposes Sterlingisation.
Published on 26th April 2019