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Many people have interpreted Gordon Brown’s comments prior to the referendum, as well as the so called “Vow” made in the Daily Record, as some commitment so “Devo Max”. My submission to The Smith Commission on further devolution for Scotland assumes that we are indeed aiming for the maximum level of devolution possible, and asks where this must fall short of the common understanding of Devo Max.

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Scotland has limited lender of last resort options in an informal currency union

If an independent Scotland chooses an informal currency union (called ‘dollarization’ or 'sterlingization') as Plan B, its financial institutions cannot be sure they will have access to emergency liquidity in the next financial crisis. This is likely to have important consequences for Scotland’s financial sector, and therefore its capacity to export financial services, its new balance of payments and general economic prosperity.   

It is clear talking to voters around Scotland that they have real difficulties in putting the claims of both sides in the referendum debate into perspective. Those claims are often very different and generally contradictory. To mark the countdown as we hit 100 days before the referendum, we launch the first part of our response to this in the form of our Guide to the Issues.

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Monetary Unions and Fiscal Constraints

New research by Dr A. Armstrong and Dr M. Ebell of NIESR entitled “Monetary Unions and Fiscal Constraints”, published in the National Institute Economic Review, 228, May 2014
 

Guest blogger Ronald MacDonald of the University of Glasgow examines Scotland's currency options.

The recent decision by all of the major unionist parties to rule out an independent Scotland participating in a sterling monetary union has created much political heat. So much so, that there is a danger that the light of the underlying economics will be extinguished in the maelstrom. As an economist, and a specialist in currency regimes, I think it is wise to return to the basic economics of this issue lest some costly mistakes are made for both Scotland and the rest of the UK.

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  • 10th August 2018

    Brexit is re-making the UK’s constitution under our noses. The territorial constitution is particularly fragile. Pursuing Brexit, Theresa May’s government has stumbled into deep questions about devolution.

  • 8th August 2018

    The UK in a Changing Europe has formed a new Brexit Policy Panel (BPP). The BPP is a cross-disciplinary group of over 100 leading social scientists created to provide ongoing analysis of where we have got to in the Brexit process, and to forecast where we are headed. Members of the UK in a Changing Europe Brexit Policy Panel complete a monthly survey addressing three key areas of uncertainty around Brexit: if —and when—the UK will leave the EU; how Brexit will affect British politics; and what our relationship with the EU is likely to look like in the future. The CCC participates on the Panel.

  • 2nd August 2018

    The House of Commons Public Administration and Constitutional Affairs Committee issued its report ‘Devolution and Exiting the EU: reconciling differences and building strong relationships’. Discussing its contents, Professor Nicola McEwen suggests that the report includes some practical recommendations, some of which were informed by CCC research. It also shines a light on some of the more difficult challenges ahead.

  • 31st July 2018

    The politicisation of Brexit, combined with deteriorating relations between London and Dublin, has created a toxic atmosphere in Northern Ireland, says Mary Murphy, which will require imagination and possibly new institutions to resolve.

  • 25th July 2018

    Given that there are many policy differences between Northern Ireland and other parts of the UK, asks Jonathan Evershed, why has customs policy been singled out as a red line by Unionists?

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