03.05.2013 - Independence currency plan ‘could prompt bank run’
A move to a separate Scottish currency could see Scottish-based savers and depositors rushing for the Border to ensure their cash stays in sterling, a leading economist has warned. After pro-independence supporters criticised Alex Salmond’s “keep the pound” policy, a major conference in Edinburgh heard that, while a switch to a new Scottish currency was feasible, it could trigger turmoil in high-street banks. Dr Angus Armstrong, the director of macroeconomic research at the National Institute of Economic and Social Research, said people in Scotland – especially firms and individuals with substantial savings – would ask themselves: “Do you think the Scottish pound would be lower than the UK pound?”..............................................Full Article: Source
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