Central Banking

Independent Scotland would face ‘significant risks’ under sterling union, says Westminster

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Scotland's economy would suffer from any of the currency options open to it if it votes for independence next year, according to a UK government report released today that argued that a ‘sterling union' could suffer from the same problems as the eurozone.

The report, Scotland analysis: currency and monetary policy, finds that "all of the alternative currency arrangements would be less economically suitable for both Scotland and the rest of the UK".

Under the existing framework, the Bank of Engla

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