I AGREE entirely with The Northern Echo’s editorial (Feb 14) concerning the viability of an independent Scotland becoming part of a sterling zone with what would be left of the UK.
In fact, I have often written to HAS about the structural weakness of the Euro zone and pointing out the basic flaws of an independent state sharing a currency with others.
The two positions are incompatible. If a state does not control its currency it cannot be truly sovereign.
However, there is another option: an independent Scotland would be free to use the pound sterling without permission.
In South America, Panama, Ecuador and El Salvador use the US Dollar in this way and, in other countries in the area, the dollar acts almost as a secondary currency.
In Scotland’s case, the banks could continue to issue sterling notes privately and, in fact, such an arrangement might lead to Scotland having a more stable economy than England, as such an deal would discourage irresponsible lending.
VJ Connor, Bishop Auckland.
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