Scottish Independence Is Bad Economics For Three Reasons

Posted by James Palmer on 02:33 AM, 16-Sep-14

knRxDuF.jpg The Scottish government has also indicated that it would attempt to increase both productivity growth post-independence and also grow GDP per capita at 3% per annum. Part of the justification for a currency union is in terms of having similar levels of productivity and GDP per capita; if the Scottish government changes these, it would make Scotland inconsistent with the union and would mean that the currency area would no longer be optimum. It is presumably for these reasons that Hughes-Hallett has now abandoned the optimum currency area analysis used by the group and uses the lens of game theory to justify a sterling currency union. The nub of the argument seems to be that if Westminster did not accede to an independent Scotland being part of a sterling monetary union, Scotland could adopt the pound anyway along the lines of the way Ecuador uses the US dollar or Montenegro the euro. By doing so, he claimed, Scotland would be unambiguously better off: more policy instruments to reach the same targets. But an informal form of sterlingisation the Panama option is a vastly inferior option to a formal monetary union, as indeed the fiscal commission working group recognises. Yet it suffers from the same basic problem of exchange rate fixity and the inability to address changes in competitiveness. As Paul Krugman and others have argued , a key reason why currency unions, and other forms of fixed rate systems, break up is that such currency locks cannot cope with the competitiveness strains placed on them. Taking recent IMF numbers for the costs of currency crisis, it is straightforward to show that maintaining the sterling zone currency union would cost an independent Scotland in the region of 25bn-35bn, but could easily cost two to three times these numbers. The cost to the UK would be even greater.

Sterling Currency Group Adds New Website Features to Buy Iraqi Dinar

UdvuHc2.png Sterling offers customers many excellent choices when it comes to paying for their dinar or other currency. Customers can pay by eCheck, wire, mail or COD. With the Sterling Loyalty Program, customers receive loyalty credits at a rate of $30 per $1,000 spent on any currency order type, making dinar prices the most competitive in the industry. Sterling Currency Group / DinarBanker has been in business as an Iraqi Dinar dealer with an outstanding reputation since 2004 with a BBB rating of A, and is a registered Money Service Business with the United States Treasury Department.

Horizonte Announces Best Efforts Offering Of Ordinary Shares And Concurrent Private Placement - Yahoo Finance

Posted by James Palmer on 05:25 PM, 16-Jul-14

Thumbnailstate securities laws. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities, in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful. About Horizonte Minerals: Horizonte Minerals Plc... [Read More]

Lloyds' Global Fx Chief Darren Coote Exits Amid Fx Fixing Scandal For 'personal Reasons'

Posted by James Palmer on 01:55 PM, 21-Apr-14

ThumbnailIn March this year, Lloyds allegedly lost hundreds of thousands of dollars in cash after a senior foreign exchange dealer allegedly tipped off a counterpart at BP about a half a billion dollar currency deal. According to reports, four unnamed sources said Lloyds found out that a dealer, Martin Chantree, alerted a trader at BP of the bumper FX swaps... [Read More]

Collette Vacations One Of The Most Interesting Items I Have Come Across As A Buyer On Ebay , Is The Iraqi Dinar.

Posted by James Palmer on 10:38 AM, 21-Apr-14

ThumbnailWhen you pay via Paypal or Credit Card the dealer incurs the costs of the transaction as opposed to you, as part of an alloy with platinum and similar metals called "native platinum. Types of World Currency United States Arguably the most influential and uncertainty of shipping and allows you to see the product before you pay. Platinum is the... [Read More]