In a press release from the Adam Smith Institute, champion of liberal capitalism and no friend to the Social Democracy favoured by Scots, Kate Andrews, Research Director, demolishes Better Together's suggestion that the SNP's lack of a plan B* matters so much. She writes:
"An independent Scotland could flourish either by using the pound sterling without the permission of the rUK (or by setting up a "ScotPound" pegged to sterling through a currency board, which would achieve a similar end). This 'sterlingization' would emulate a number of Latin American countries that use the US Dollar without an official agreement with the US government. Because Scottish banks would not have access to a currency-printing lender of last resort, they would have to make their own provisions for illiquidity, and would necessarily act more prudently.
"Scotland actually had this system of 'free banking' during the 18th and 19th centuries, during which time its economy boomed relative to England's and its banks were remarkably secure. And Panama, which uses the US Dollar in this way, has the seventh most stable financial system in the world.
"Everyone says Mr Salmond needs a Plan B if the rUK does not agree to a currency union with Scotland. But unilateral adoption should be Plan A, making Scotland's economy more stable and secure. The UK's obstinacy would be Scotland's opportunity."
*Of course there are various other plans beside Plan A. The FM made it clear that a Fiscal Commission has laid out alternatives. The Scottish government, however, agrees with the Fiscal Commission (and the Adam Smith Institute), that a currency sharing option is the best option, not just for Scotland but for the UK as well.